We’ve all witnessed the turmoil the coronavirus outbreak is pushing through the economy. Many people are rightly worried about how they will afford to make rent and mortgage payments.
President Trump has kept those worries in mind. Under his orders, the Department of Housing and Urban Development (HUD) is temporarily suspending foreclosures and evictions.
Take a look:
Fox News announced:
President Trump on Wednesday announced that the Department of Housing and Urban Development will suspend all home foreclosures and evictions to the end of April amid the coronavirus outbreak.
During a press conference from the White House briefing room on Wednesday, Trump said that he was working with HUD Secretary Ben Carson on the matter.
“HUD will suspend all foreclosures and evictions until the end of April,” Trump said.
The announcement comes as the coronavirus, also known as COVID-19, outbreak rocks the markets and the economy.
The president has said that a recession is possible, and Senate Minority Leader Chuck Schumer, D-N.Y., echoed the same concerns from the Senate floor Wednesday.“Even as the market shifts from day to day, coronavirus is slowing our economy to a near standstill and we’re almost certainly anticipating a recession,” Schumer said.
The Hill adds:
President Trump on Wednesday directed the Department of Housing and Urban Development (HUD) to suspend evictions and foreclosures through April as Americans grapple with the fallout of the coronavirus.
"The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April," Trump said at a White House press briefing. "So we’re working very closely with [HUD Secretary] Dr. Ben Carson and everybody from HUD."
The moratorium will apply only to homeowners with mortgages insured by the Federal Housing Administration, a HUD agency that backs affordable home loans issued through private firms.“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” Carson said in a statement, referring to the disease caused by the novel coronavirus.
“The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
The Federal Housing Finance Agency (FHFA) also announced Wednesday that it would suspend foreclosures and evictions for homeowners with mortgages backed by Fannie Mae or Freddie Mac.
Fannie and Freddie are government-sponsored enterprises that purchase mortgages furnished to low-income homeowners and either hold the loans in their portfolios or package them into investment products. The sale of mortgage-backed securities gives banks and mortgage lenders a steady stream of return on home loans that allows them to keep issuing affordable mortgages to low-income homeowners.
The move offers a reprieve for many Americans as the economy reels from impacts of the coronavirus. Some state and local leaders have already suspended evictions during the pandemic, citing the financial uncertainty many renters and homeowners are facing.