forbearance policies to 2021 The extension means some borrowers may not exit forbearance until February 2022

Didier Malagies • December 21, 2020

forbearance policies to 2021

The extension means some borrowers may not exit forbearance until February 2022

Ten days ahead of the latest expiration date, the Department of Housing and Urban Development announced that the Federal Housing Administration is providing a two-month extension of its foreclosure and eviction moratorium, and initial forbearance requests through Feb. 28, 2021. This now marks the fourth eviction moratoria extension the FHA has enacted since the COVID-19 pandemic began.

The moratorium directs mortgage servicers to halt all new foreclosure actions and suspend all foreclosure actions currently in progress, excluding legally vacant or abandoned properties. It also directs servicers to cease all evictions of persons from FHA-insured single-family properties, excluding actions to evict occupants of legally vacant or abandoned properties.



“Throughout this global pandemic, the Trump Administration has taken unprecedented steps to assist FHA-insured borrowers who are impacted by COVID-19,” said HUD Secretary Ben Carson. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability.”


The FHA also revealed it is extending the deadline for single-family borrowers with FHA-insured mortgages to request initial forbearance through the end of February as well. Because single-family borrowers can defer or reduce their mortgage payments for up to six months, plus an additional six months if requested, some FHA borrowers may not exit forbearance until Feb. 28, 2022.


In an additional bid to support lenders and servicers, the FHA also revealed extensions for various policies including the timeframe for providing an insurance endorsement through March 31, 2021.

Low mortgage rates fuel the demand for valuation and settlement services


VRM Mortgage Services CEO shares how the company is navigating a difficult year, and how its services are impacted by the different national, state and local directives on foreclosure.


Temporary re-verification of employment, exterior-only appraisal inspections, provisions for self-employment verifications and rental income will also be extended to Feb. 28, 2021. In addition, provisions to 203(K) Rehabilitation Mortgage escrow accounts – a popular choice for borrowers looking to buy a fixer-upper that doesn’t qualify for FHA financing “as-is,” are also extended.


“COVID-19 has created hardships for millions of Americans. FHA will continue to assist borrowers who are struggling to regain their financial footing as a result of this pandemic. American homeowners should not be forced from their homes while they are seeking help,” said assistant Secretary for Housing and Federal Housing Commissioner Dana Wade.


On Dec. 2, the Federal Housing Finance Agency also extended its foreclosure moratorium for borrowers with mortgages backed by Fannie Mae and Freddie Mac – though for just a one-month grace period to Jan. 31. The FHFA has not announced whether it will continue to buy loans in forbearance past the current expiration date of Dec. 31, 2020.


According to recent data from the Mortgage Bankers Association, 7.68% of Ginnie Mae securities, primarily mortgages backed by the FHA and Veterans Administration, are in some stage of forbearance. GSE loans, however, have settled at 3.26%.


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What happens when the Feds drop the rates

By Didier Malagies • July 14, 2025
📉 1. Borrowing Becomes Cheaper Mortgage rates tend to fall, making it easier for people to buy homes or refinance. Car loans, personal loans, and credit cards may also have lower interest rates. Businesses can borrow more cheaply to invest in growth. 💸 2. Consumer Spending Increases Since borrowing is cheaper and savings earn less interest, people are more likely to spend money rather than save it. This can boost demand for goods and services, helping to stimulate economic activity. 🏦 3. Savings Yield Less Savings accounts, CDs, and bonds typically offer lower returns. This can push investors to move money into riskier assets like stocks or real estate in search of higher returns. 📈 4. Stock Market Often Rallies Lower rates can mean higher corporate profits (due to cheaper debt) and increased consumer spending. Investors may shift funds from bonds into stocks, driving up equity prices. 💵 5. The U.S. Dollar May Weaken Lower interest rates can make the dollar less attractive to foreign investors, potentially weakening the currency. This can help U.S. exporters (as their goods become cheaper abroad) but may also increase the cost of imports. 🧩 6. Inflation Could Rise More spending and borrowing can increase demand, which may push prices up, leading to higher inflation—especially if supply can’t keep up. 🏚️ 7. Real Estate Activity Tends to Pick Up Lower mortgage rates can boost homebuying, refinancing, and construction, which helps stimulate related industries. tune in and learn https://www.ddamortgage.com/blog didier malagies nmls#212566 dda mortgage nmls#324329 

Why mortgage purchase apps are on a 22-week growth streak

By Didier Malagies • July 8, 2025
Mortgage purchase applications are on a 22-week growth streak primarily due to a combination of improving market conditions, seasonal trends, and changing consumer behavior. Here's a breakdown of the key reasons behind the sustained growth: 🔑 1. Falling Mortgage Rates Mortgage rates have been gradually declining from the highs seen in 2023. Even small drops in interest rates significantly improve affordability, prompting more buyers to apply for loans. Borrowers are locking in rates with the hope that they’ve hit a local low. 🏡 2. Pent-Up Demand from 2023 Many potential buyers delayed purchases during 2023 due to high rates and limited inventory. As conditions improve, backlogged demand is being released into the market. 🌞 3. Spring & Summer Buying Season The U.S. housing market typically sees a seasonal increase in purchase activity starting in spring and continuing through summer. Families prefer to move during school breaks, contributing to more applications in this window. 💼 4. Improved Inventory Levels While still tight, housing inventory has started to improve slightly in some regions. Builders are offering incentives and new constructions are increasing, drawing more buyers into the market. 📈 5. Confidence in the Economy A strong labor market and steady wage growth are boosting consumer confidence , encouraging people to buy homes. Some buyers are moving before potential rate hikes or home price increases . 💡 6. Shift Toward Homeownership Rising rents and lifestyle changes post-pandemic are pushing many toward owning rather than renting . First-time homebuyers are a large portion of this demand. Summary:  The 22-week growth streak in mortgage purchase applications is being driven by lower mortgage rates, seasonal buying trends, improved inventory, and returning buyer confidence . While challenges like affordability and supply remain, these positive signals suggest a slow but steady rebound in the housing market .

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By Didier Malagies • July 7, 2025
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