The Federal Housing Finance Agency on Wednesday directed servicers of Fannie Mae and Freddie Mac-backed loans to pause foreclosures for up to 60 days upon notification that borrowers have applied for Homeowner Assistance Fund money, National Mortgage News reported. “Today’s action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief,” said Sandra Thompson, acting director of the FHFA, in a press release. The move provides direction to servicers who have been trying to determine how best to juggle the phase-out of other types of federal housing relief at the same time that states, U.S. territories and tribal entities have been distributing the up to $9.96 billion available from the Treasury’s fund.
