Mitigating Homeownership-Related Financial Impacts of COVID-19
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The COVID-19 pandemic has created a very uncertain, rapidly changing environment for us all. Grounded Solutions Network provides expertise in both achieving and maintaining long term housing stability, and we want to make it easier for you to communicate with homeowners who may be at risk of falling behind on their mortgages due to layoffs, losing income, quarantining, and illness.
Last Wednesday (3/18), HUD announced that it would suspend foreclosures and evictions for mortgages insured by the Federal Housing Administration for 60 days (see Mortgagee Letter 2020-04). Similarly, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage.
And earlier this month, FHFA announced that Fannie Mae and Freddie Mac would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus. Many banks are taking action to help borrowers impacted by the pandemic.
- Please urge your homeowners that they should immediately contact their servicer if they are at risk of falling behind on their mortgages so that loss mitigation strategies can be implemented quickly.
- Share with all residents the Consumer Financial Protection Bureau guidance on how to protect oneself from the financial impacts of the coronavirus.
- While far greater aid is needed, let them know more help is on the way through an $8 billion federal emergency spending package.
- Instruct all residents and staff to follow the guidance from the Center for Disease Control to protect yourself, loved ones, and community members.
During this unprecedented COVID-19 threat, Grounded Solutions Network will shift our focus to directly support the critical affordable housing-related relief efforts needed by over 255,000 families who are currently living in the communities served by our network members today.
Please stay safe!
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Where we live matters.
We bring together an extensive network of partners and member practitioners from local communities who have a deep understanding of best practices in community land trusts, shared equity housing, local housing policies such as inclusionary zoning, and more.
At Grounded Solutions Network, we know what policies and strategies work to build and preserve housing opportunities, and we help communities use them.
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