Payment relief for borrowers of federally-backed mortgages provided under the CARES Act will expire soon. Under the law borrowers may request up to 12 months of forbearance, made up of two 180-day periods of relief, if they are experiencing financial hardship due to the pandemic. The Federal Housing Finance Agency (FHFA) announced on Tuesday that “borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional forbearance extension of up to three months,” noting that additional relief will only be available to borrowers that are on a COVID-related forbearance plan as of February 28, 2021. The FHFA is also “extending the moratoriums on single-family foreclosures and real estate owned (REO) evictions” through the end of March 2021. Additionally, as part of the proposed COVID stimulus package being negotiated in Congress, the Biden administration is pushing for forbearance relief though September, while also proposing that the foreclosure and eviction moratorium on federally backed loans be extended to September 30, 2021.

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