Tags: Coronavirus | Financial Markets | Trump Administration | foreclosures | evictions | hud | fha

Report: HUD to Halt Evictions, Foreclosures for Nearly 8.1M

ben carson speaks during a congressional hearing
Housing and Urban Development Secretary Dr. Ben Carson (Susan Walsh/AP)

By    |   Tuesday, 18 August 2020 06:32 PM

The U.S. Department of Housing and Urban Development will halt evictions and foreclosures for owners with FHA loans through the end of the year, reports Politico.

The announcement comes a day after the Mortgage Bankers Association reported nearly 16% of FHA loans are delinquent, the highest level in records going back to 1979.

FHA loans are used by many minorities, lower-income and first-time homebuyers because low down payments make homeownership more affordable.

The ban applies to roughly 8.1 million homeowners, according to Politico.

"The Trump administration is looking at using authorities within its jurisdiction to extend relief through the calendar year for Americans experiencing financial hardship due to the coronavirus, which includes existing funds as well as moratoriums on foreclosures and evictions," a person familiar with the situation told the news outlet.

Marina Walsh, the MBA's vice president of Industry Analysis, said ongoing uncertainty around the "ambiguous status of enhanced unemployment benefits and other stimulus measures, the recent surge in new COVID-19 cases, and the retrenchment from reopening in certain states," has contributed to the surge in delinquent payments.

"There is no way to sugarcoat a 32.9% drop in GDP during the second quarter," Walsh said. "Certain homeowners, particularly those with FHA loans, will continue to be impacted by this crisis, and delinquencies are likely to stay at elevated levels for the foreseeable future."

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The U.S. Department of Housing and Urban Development will halt evictions and foreclosures for owners with FHA loans through the end of the year, reports Politico.
foreclosures, evictions, hud, fha, pandemic, housing and urban development
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2020-32-18
Tuesday, 18 August 2020 06:32 PM
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