FHFA: GSEs to Hold off on Certain GSE Foreclosures in Light of New CFPB Rule

Following a final rule issued by the Consumer Financial Protection yesterday establishing a temporary COVID-19 emergency pre-foreclosure period under Regulation X that prohibits servicers from making the first notice or filing required to initiate foreclosure until Dec. 31, the Federal Housing Finance Agency today said that Fannie Mae and Freddie Mac servicers may not make a first notice or filing for foreclosure that would be prohibited by the CFPB rule before it takes effect.

FHFA took this action to bridge the gap between the expiration of its existing moratoriums on single-family foreclosures and real estate owned evictions that will expire on July 31—a month before the CFPB rule is set to take effect.