According to The Hill, on Wednesday, President Trump ordered the Department of Housing and Urban Development (HUD) to stop evictions and foreclosures through April due to the coronavirus pandemic.
“The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April,” Trump stated at a White House press briefing. “So we’re working very closely with [HUD Secretary] Dr. Ben Carson and everybody from HUD.”
The order will only qualify for homeowners with mortgages insured by the Federal Housing Administration. This is a HUD agency that provides affordable home loans through private firms.
“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” Carson stated.
“The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
The Federal Housing Finance Agency (FHFA) also stated this Wednesday that it will stop foreclosures and evictions for homeowners with mortgages provided by Fannie Mae or Freddie Mac. Fannie Mae and Freddie Mac are government-supported organizations that obtain mortgages given to low-income homeowners.
The order is to help many Americans while the economy is taking a major hit from the impact of the coronavirus. Some states and local leaders have stopped evictions during the global pandemic due to financial burdens.
The White House and Congress are also negotiating a financial rescue package to support Americans that were laid-off and businesses that are closing down due to the COVID-19 national emergency. Talks have also included giving direct cash payments dispersed to Americans. The negotiations have been faced with opposition from some Senate Republicans.
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