Mortgage FHFA extends foreclosure, eviction moratorium to February Extends moratorium for fifth time

Didier Malagies • January 23, 2021

MortgageFHFA extends foreclosure, eviction moratorium to February

Extends moratorium for fifth time



The Federal Housing Finance Agency announced Tuesday that Fannie Mae and Freddie Mac will once again extend moratoriums on single-family foreclosures and real estate owned evictions, this time until Feb. 28, 2021.


“To keep our communities safe, and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratorium,” FHFA Director Mark Calabria said.


This marks the fifth time the FHFA has extended the eviction and foreclosure moratorium on a program originally set to expire in June 2020. Most recently, the eviction moratorium was set to expire on Jan. 31, 2021.


The foreclosure moratorium applies to GSE-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by a GSE through foreclosure or deed-in-lieu of foreclosure transactions.


The FHFA projects the COVID-19 foreclosure moratorium and its extension will create an additional $1.4 to $2 billion in expenses for the government-sponsored enterprises.

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The U.S. forbearance rate fell seven basis points at the beginning of January to 5.46% of servicer’s portfolio volume, according to a survey from the Mortgage Bankers Association. As of that week’s data set, forbearance portfolio share is now below numbers Black Knight reported in mid-April of 2020.


Overall, forbearances are decreasing, but the speed at which they are declining is beginning to slow. The latest forbearance numbers from MBA marked the eleventh consecutive week servicers portfolios have hovered between 5% and 6% – the longest a percentage range has held since the survey’s origins in May.

Last week the FHFA announced it extended relaxed lending and appraisal standards put in place due to COVID-19 another month for both Fannie Mae and Freddie Mac. The flexibilities surrounding alternative verifications of employment and appraisals were set to expire on Jan. 31, 2021, however, the government entity is now pushing that back to at least Feb. 28, 2021.



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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 

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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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