Biden Extends Foreclosure Moratorium, Updates FHA DACA Loan Terms
On the first day of his administration, President Joe Biden released a list of executive orders, including one that requested from federal departments and agencies to extend their deportation and seizure bans at least until the end of March. As with previous expansions, this law is designed to provide continued relief to homeowners and tenants who are feeling the negative financial impact of the ongoing COVID-19 pandemic.
According to the ordinance, home foreclosures and evictions would be postponed until at least March 31, 2021.
Earlier this week, Extended FHFA once again their moratoriums on foreclosures of single-family homes and evictions of real estate (REO) until February 28. The moratoriums were previously scheduled to expire on January 31.
Additionally, on Wednesday morning, HUD Secretary Dr Benjamin Carson and HUD Assistant Secretary Brian Montgomery announced that the FHA will now allow DACA status recipients to apply for FHA insured mortgages. The change took effect on January 19. According to the FHA statement:
Prior to today’s announcement, the FHA Single Family Housing Handbook (“Handbook 4000.1 Section II.A.1.b.ii (A) (9) (c)) includes this statement:” Non-US citizens without legal residency in the United States is not eligible for FHA insured mortgages. This language was incorporated into the FHA manual by the Obama administration in September 2015, although it was first incorporated into the FHA guidelines in 2003.
The statement also noted that “other FHA requirements remain in effect for all potential borrowers, including recipients of DACA status:
- the property will be the principal residence of the borrower;
- the borrower has a valid Social Security Number (SSN), except for those employed by the World Bank, a foreign embassy or an equivalent employer identified by HUD;
- the borrower is authorized to work in the United States, as evidenced by the employment authorization document issued by USCIS; and
- the borrower meets the same requirements, terms and conditions as
American citizens. “
Editor’s Note: This article has been updated to clarify that the FHA DACA changes were implemented by HUD Secretary Carson and Assistant Secretary Montgomery.