Single Family Housing Direct and Guaranteed Loans

Press release:

The U.S. Department of Agriculture announced an extension of eviction and foreclosure moratoriums on USDA Single Family Housing Direct and Guaranteed loans through June 30. The actions announced today (Feb. 16) will bring relief to residents in rural America who have housing loans through USDA.

“USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States," said USDA Deputy Under Secretary for Rural Development Justin Maxson. "That’s why USDA is taking this important action today to extend relief to the hundreds-of-thousands of individuals and families holding USDA Single Family Housing loans.

"While today’s actions are an important step for them, we need to do more. The Biden Administration is working closely with Congress to pass the American Rescue Plan to take more robust and aggressive actions to bring additional relief to American families and individuals impacted by the pandemic.”

A recent Census Bureau survey showed that 8.2 million homeowners are currently behind on mortgage payments, and of that 8.2 million, 3 million homeowners behind on payments were Black or Hispanic.

This effort underscores a commitment by USDA to bring relief and assistance to farmers, families and communities across the country who are in financial distress due to the coronavirus pandemic.

In January, USDA took action to bring relief to more than 12,000 distressed borrowers of USDA farm loans by temporarily suspending past-due debt collections, foreclosures, non-judicial foreclosures, debt offsets or wage garnishments, and more. Learn more at the following link: USDA Temporarily Suspends Debt Collections, Foreclosures and Other Activities on Farm Loans for Several Thousand Distressed Borrowers Due to Coronavirus.

Visit www.rd.usda.gov/coronavirus for additional information on USDA’s Rural Development COVID-19 relief efforts, application deadline extensions and more. USDA Rural Development will keep our customers, partners and stakeholders continuously updated as additional actions are taken to bring relief and development to rural America.

Homeowners and renters can also visit www.consumerfinance.gov/housing for up-to-date information on their relief options, protections, and key deadlines from USDA, the Department of Housing and Urban Development, the Department of Veterans Affairs, the Federal Housing Finance Agency, and the Consumer Financial Protection Bureau.

Press release:

In one of his first acts in office, President Joe Biden requested federal agencies to extend eviction and foreclosure moratoriums for millions of Americans.

In response, the U.S. Department of Agriculture announced an extension of eviction and foreclosure moratoriums on USDA Single Family Housing Direct and Guaranteed loans (SFHDLP and SFHGLP) through March 31. The actions announced today will bring relief to residents in rural America who have housing loans through USDA.

USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States. Today, 1 in 10 homeowners with a mortgage are behind on payments.

In addition to the actions taken, the Biden Administration looks forward to working with Congress to take more robust and aggressive actions to bring additional relief to American families and individuals impacted by the pandemic.

Visit www.rd.usda.gov/coronavirus for additional information on USDA’s Rural Development COVID-19 relief efforts application deadline extensions and more. USDA Rural Development will keep our customers, partners and stakeholders continuously updated as additional actions are taken to bring relief and development to rural America.

Foreclosure Moratorium Extension

The actions announced today make it possible for the foreclosure and eviction moratorium announced by USDA, Single Family Housing Direct Loan Program (SFHGLP) and the Single Family Housing Guaranteed Loan Program (SFHGLP) on Aug. 28 to be extended until March 31. The moratorium does not apply in cases where USDA or the servicing lender has documented the property is vacant or abandoned.

Forbearance Requirements

Lenders should continue to provide impacted borrowers relief in accordance with the CARES Act by offering forbearance of the borrower guaranteed loan payment for up to 180 days. In addition, the initial forbearance period may be extended up to an additional 180 days at the borrower’s request. Lenders should outline potential solutions that may be available at the end of the forbearance payment and explain to borrowers that a lump sum payment of the arrearage will not be required.

During the forbearance options outlined above, no accrual of fees, penalties or interest may be charged to the borrower beyond the amounts calculated as if the borrower had made all contractual payments in a timely fashion.

Lenders may approve the initial 180-day COVID-19 Forbearance no later than the earlier of the termination date of the national emergency declared by the President on March 13, 2020 or March 31.

Post Forbearance Options

Upon completion of the forbearance, the lender shall work with the borrower to determine if they can resume making regular payments and, if so, either offer an affordable repayment plan or term extension to defer any missed payments to the end of the loan. If the borrower is unable to resume making regular payments, the lender should evaluate the borrower for all available loss mitigation options outlined in HB-1-3555.

The special relief measured that are outlined in Chapter 18 Section 5 “Assistance in Natural Disasters” will apply. These options include Term Extensions, Capitalization and Term Extensions, and a Mortgage Recovery Advance.