MGIC Investment Corp. (MTG)

[tommiegun54]

FHFA EXTENDS FORCLOSURES AND FORBEARANCE MORATORIUMS TO JUNE 30, 2021

The action extends any loss potential through to the Q3 Quarter for PMI COMPANIES.

The extension is a logical step to allow borrowers to feel the effect of the ECONOMIC RECOVERY AS THE ECONOMIC COVID STIMULUS ROLLS THROUGH THE ECONOMY.

"The moratorium on foreclosures of GSE mortgages was changed from a March 31 expiration to June 30 as was the moratorium on evictions. The latter applies only to GSE owned real estate (REO) that was foreclosed or taken through a deed-in-lieu.

FHFA also announced another three-month extension of COVID-19 forbearance. The available period during which borrowers impacted by the pandemic can defer or make reduced mortgage payments will now be a maximum of 18 months.

Eligibility for the extension is limited to borrowers who are in a COVID-19 forbearance plan as of February 28, 2021, and other limits may apply. The option to defer repayment of arrearages until the home is sold, refinanced, or at loan maturity will now cover up to 18 months of missed payments."

http://www.mortgagenewsdaily.com/02252021_covid_impacts.asp