The White House on Friday announced plans to expand aid to mortgage borrowers who defaulted on their payments during the coronavirus pandemic.
Homeowners on government-backed mortgages who have been negatively affected by the pandemic will see increased assistance with the aim of cutting some monthly payments by about 25%, according to a White House datasheet.
The move is intended to more closely match the mortgage options supported by the Department of Housing and Urban Development, the USDA and Veterans Affairs Department with those for mortgages offered by Fannie Mae and Freddie Mac, the White House said.
As the economy comes back to life after the lockdowns caused by COVID-19, government officials continue to monitor the housing market closely. House prices have risen during the pandemic. At the same time, with millions of unemployed Americans, people are struggling to pay mortgages or rent.
The government wanted to ensure people didn't lose their homes or apartments if they couldn't pay their bills in the middle of a massive public health crisis.
Earlier this year, the Biden government extended a moratorium on foreclosures and the period during which homeowners could participate in mortgage forbearance programs if they had government-supported loans. In June the government extended the foreclosure moratorium for a final month to July 31 and the deferral window to September 30. Around 7.2 million American households took advantage of the forbearance options.