House Committee Finds 500K Homeowners Aren’t Getting Mortgage Relief, Calls Out Government Inaction

A housing crisis is brewing that can be solved pretty quickly, according to housing policy experts, but so far has been largely ignored by the Federal Housing Finance Agency (FHFA). FHFA is the agency that regulates the government-sponsored entities Fannie Mae and Freddie Mac, which support 70% of the nation’s mortgage borrowing.

Many homeowners who are eligible for forbearance under the Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, are not getting relief and could be facing imminent foreclosure. In June, 430,321 eligible homeowners were delinquent with their mortgage payments, but were not in forbearance. Fannie and Freddie, however, say the vast majority of eligible homeowners have enrolled in forbearance.

Under forbearance, homeowners could postpone monthly mortgage payments for up to one year. Among potential repayment options, loan servicers could tack on the missed payments to the end of the loan, which would be

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