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The Consumer Financial Protection Bureau (CFPB) and U.S. Department of Justice (DOJ) issued two joint letters yesterday regarding important legal housing protections for military families, according to a CFPB press release. One letter was sent to landlords and other housing providers regarding protections for military tenants. A second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs in the coming weeks and months. The letter to landlords and other housing providers reminds property owners of the important housing protections for military tenants, some of whom may have had to relocate or make other changes to their housing arrangements in response to the crisis. While military families enjoy the same legal protections and privileges afforded to all other homeowners and tenants, they also have additional housing protections under the Servicemembers Civil Relief Act (SCRA), which is enforceable by the DOJ and servicemembers themselves. The letter to mortgage servicers comes in response to complaints from military families and veterans on a range of potential mortgage servicing violations, including inaccurate credit reporting, misleading communications to borrowers, and required lump sum payments for reinstating their mortgage loans. These complaints are being reviewed for compliance by the CFPB with the Coronavirus Aid, Relief, and Economic Security (CARES) Act and other applicable requirements.

The swift arrival of a new coronavirus variant has rekindled economic anxieties in Washington, D.C., as congressional lawmakers, business leaders and consumer advocates begin to worry whether there is enough federal aid to shield Americans from another round of financial despair, the Washington Post reported. Over the course of the nearly two-year pandemic, Congress has committed nearly $6 trillion toward combating the contagion and bringing a battered economy back from the brink. But some of the most significant programs to keep businesses afloat and help households pay bills have expired or run out of funds, raising new risks for the future of the country’s recovery, particularly as the omicron variant wave begins to take hold. There’s no federal money left to keep restaurants open. The aid for concert halls and other customer-starved performance spaces has nearly gone dry. Federal officials ended their primary effort that pumped money into small businesses with sagging balance sheets, and they stopped paying out extra sums to workers who are out of a job. Federal student loan protections are expiring imminently, meaning students’ bills are set to come due early next year. A stimulus initiative under President Biden that provided monthly payments to more than 35 million families with children may have issued its last round of deposits this past Wednesday. And attempts to extend those tax benefits — or address a wider array of longer-term financial issues facing parents — have stalled again on Capitol Hill. “I’m concerned that you’re going to have many, many vulnerable Americans, Americans with young children for example, falling between the cracks,” said Sen. Ron Wyden (D-Ore.), adding: “January looks like a tough month with respect to omicron.”

The United States Department of the Treasury has approved California’s plan to provide $1 billion in mortgage relief, clearing the way for the California Mortgage Relief Plan to provide help to as many as 40,000 struggling homeowners, according to a statement from Gov. Gavin Newsom’s office, the Sacramento Bee reported. “We are committed to supporting those hit hardest by the pandemic, and that includes homeowners who have fallen behind on their housing payments,” Newsom said in a statement. “No one should have to live in fear of losing the roof over their head, so we’re stepping up to support struggling homeowners to get them the resources they need to cover past due mortgage payments.” California already has provided renters and landlords with assistance, he noted. “Now, with our California Mortgage Relief Program, we are extending that relief to homeowners,” he said. The program will help homeowners make past due housing payments — to a maximum of $80,000 per household — by making a direct payment to the mortgage servicers.

Fannie Mae and Freddie Mac shares climbed after their regulator announced that the mortgage giants will be able to back loans worth nearly $1 million in some of the most expensive U.S. housing markets, Bloomberg News reported. Reflecting the surge in home prices during the COVID-19 pandemic, Fannie and Freddie will be able to buy loans of $970,800 in areas including San Francisco, Los Angeles and New York, the Federal Housing Finance Agency announced Tuesday. The increased loan limits apply to single-family residences. Shares of Fannie and Freddie both rose about 14% to 99 cents and $1, respectively, in New York trading as of 2:15 p.m. Fannie and Freddie don’t make mortgages. They buy them from lenders, wrap them into securities and guarantee repayment of principal and interest to investors. The federal government took control of the companies during the 2008 financial crisis and bailed them out as mortgage defaults mounted. In other parts of the country, loan limits will increase to $647,200 next year from $548,250 in 2021, the FHFA said. The changes are aimed at making it more affordable for Americans to purchase homes. The pandemic has sparked fierce competition for properties as Americans sought more space to live and work. Record low mortgage rates have also fueled the real-estate frenzy. More owners are expected to list their properties for sale in the coming months, which would help ease the inventory shortage. But demand remains intense. A measure of home prices in 20 U.S. cities jumped 19.1% in September, the S&P CoreLogic Case-Shiller index showed Tuesday. Nationwide, prices climbed 19.5%, the data show.