The move would help millions of anxious homeowners and renters – for a few months, anyway
On Wednesday, Politico reported that the Department of Housing and Urban Development will extend its ban on foreclosures and evictions for homes backed by the Federal Housing Administration until the end of the year.
According to “administration officials” and “a person familiar with the situation”, Politico says the Trump administration is considering “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.”
If that wording sounds both vague and familiar, that could be because it resembles the largely empty verbiage contained in Donald Trump’s August 8 executive order aimed at preventing evictions.
In the order, Trump said the Secretary of Health and Human Services and the Director of the Center for Disease Control “shall consider whether any measures temporarily halting residential evictions of any tenants for failure to pay rent are reasonably necessary,” adding that the administration “will take all lawful measures to prevent residential evictions and foreclosures resulting from financial hardships caused by COVID-19.”
No actual policy changes were announced in Trump’s orders. At time of writing, none had been confirmed by HUD or the Federal Housing Finance Agency, either. Neither HUD’s nor FHFA’s Twitter accounts mentioned the extension, nor did either body’s websites.
Adding to the uncertainty on Tuesday was HUD spokesman Brad Bishop, who said the Department is “looking at a myriad of options to ensure the American people do not lose their homes during the Coronavirus pandemic.” Bishop did not confirm the eviction ban’s extension.
But gears are apparently turning. On Monday, the Office of Management and Budget’s Office of Information and Regulatory Affairs finished reviewing the action, paving the way for its implementation.
An extended HUD ban will still only cover FHA mortgages. While it would grant roughly 8.1 million FHA borrowers some peace of mind, it would leave unprotected all Fannie Mae and Freddie Mac customers – roughly half of the country’s residential mortgage market – who had previously been covered by the CARES Act’s four-month eviction moratorium that was allowed to expire in July.
According to the US Census’ Household Pulse Survey, over 44.6 million Americans face some form of housing insecurity. On August 16, GnS Economics reported that state-wide eviction bans have ended in more than 30 states.
“Some 40 million Americans could lose their homes, four times the amount seen during the Great Recession,” a GnS tweet read.
With the House and Senate taking an extended break from Washington, and both sides doing their pigheaded, self-serving best to ensure the next round of COVID-19 aid is delayed, it’s unlikely that a bi-partisan agreement that protects homeowners and renters will materialize for weeks. Until then, the HUD extension, narrow as its focus may be, is the only relief in sight.
