Published: July 2021

Grant FHA-backed borrowers the full forbearance relief they are legally entitled to

In a letter to the U.S. Department of Housing and Urban Development (HUD), coalition advocates urged HUD to give Federal Housing Administration-backed borrowers who start forbearance plans after July 1, 2021, access to a full 12 months of forbearance, in line with policies from the Government Sponsored Enterprises (GSEs), the Department of Veterans Affairs (VA), and the Department of Agriculture (USDA). In doing so, HUD would rightfully recognize the continued economic turmoil from the global pandemic. HUD’s current decision unnecessarily limits forbearance for borrowers accessing plans after June 30, 2021, to only six months of relief instead of the standard 12 months pursuant to the CARES Act.

Advocates wrote a letter to the U.S. Department of Housing and Urban Development (HUD) asking that it extend its COVID-19 foreclosure and forbearance moratoriums for FHA-backed loans to a full 12 months of relief, instead of six months, for those who access forbearance options after June 30, as outlined in the CARES Act. Forbearance is an option that mortgage servicers offer to provide homeowners with a pause in their monthly payments for a limited period of time—in this case, during a COVID-19 induced hardship. The Department of Veterans Affairs and the Department of Agriculture did not include a similar six-month limit in their announcements regarding extending the forbearance deadline. The GSEs also have no such limit.

Lead Organization

Americans for Financial Reform (AFR)

Other Organizations

Advocates for Basic Legal Equality, Inc. | Americans for Financial Reform Education Fund | Atlanta Legal Aid Society, Inc. 
| California Reinvestment Coalition 
| Center for Civil Justice (MI) 
| Center for Community Progress
 | Center for Responsible Lending 
| Civil Justice, Inc. (MD) | Community Legal Services of Philadelphia | 
Connecticut Fair Housing Center
 | Consumer Action 
| Greater Boston Legal Services, on behalf of its low-income clients | Jacksonville Area Legal Aid, Inc. | Legal Aid Chicago 
| Legal Aid Society of Southwest Ohio, LLC |
 Legal Services of New Jersey |
 Legal Services Center of Harvard Law School
 | Michigan Poverty Law Program
 | Mountain State Justice (WV) 
| NHS Brooklyn CDC, Inc. 
| National Association of Consumer Advocates 
| National Fair Housing Alliance 
| National Housing Law Project 
| National Consumer Law Center (on behalf of its low-income clients) | National Housing Resource Center 
| North Carolina Justice Center 
| Philadelphia Unemployment Project
 | Prosperity Now 
| Public Citizen 
| Vermont Legal Aid
 | Woodstock Institute

More Information

Click here to read the coalition letter in full.

Click here to learn more about HUD's moratorium order.

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