The government-sponsored enterprises that play a large role in the U.S. mortgage market extended by one month some of the special procedures they've allowed in order to offset coronavirus-related risks.
The extension through at least July 31 comes following the release of mixed data related to the extent to which coronavirus cases and related economic woes have subsided.
An overall pessimistic read on the data, which shows slight improvement in the economy but a continued rise in the infection rate, drove a rout in the stock market Thursday.
The measures the GSEs extended include
The Biden administration once again extended the pause on student loan payments enacted to help borrowers during the COVID-19 pandemic, this time through the end of August.
The two states' combined plans amount to over $1.5 billion of the Homeowner Assistance Fund included within the American Rescue Plan Act , which was passed a year ago.
An uptick in pandemic-related payment suspensions reflecting new or restarted plan activity previously occurred as the omicron variant spread, but activity has since subsided.
Mortgage borrowers and lenders will additionally be able to continue to use power of attorney and
Fannie and Freddie will also remain able to
The FHFA has said it would make adjustments to these temporary measures as is necessary.
FHFA Director Mark Calabria at
Calabria has been working to balance the need to assist borrowers with financial distress caused by the coronavirus with the need to rebuild the GSEs' capital buffers so he can protect Fannie and Freddie’s finances as well.
