The Ministry of Housing and Urban Development on Thursday, on instructions from the Biden government, extended the ban on foreclosures and evictions of single-family homes by one month to March 31.
“President Biden has asked the Department of Housing and Urban Development to consider immediately extending the eviction and foreclosure moratoriums on federal government-sponsored single-family mortgages. In order to provide much-needed economic aid and support to working families, the HUD has implemented the president's demands, "HUD acting secretary Matthew Ammon said in a press release released Thursday.
The extension of the foreclosure ban on the federal housing authority, as well as public and Indian home loans, through March 31, fulfilled expectations that state housing authorities would generally expand the scope of housing relief for consumers as part of Washington's transition to democratic leadership. For example, the US Department of Agriculture has extended its ban.
Shortly before the inauguration, the Federal Housing Agency extended its deadline for the foreclosure and evacuation of single-family houses from January 31 to February 28 and will probably extend it further.
Steps at individual agencies are likely stop gap measures as the Biden government's $ 1.9 trillion stimulus plan calls for bans to be extended and indulgence through September 30th.
The administration's plan and the foreclosure and eviction bans were assessed differently by the industry.
On Tuesday, the data provider CoreLogic assessed the more than 20-year low in vacancy rates in single-family homes as a contribution to maintaining the stability of rental prices despite economic challenges. These low vacancy rates are largely due to the eviction ban.
In contrast, Richard Kruse, a principal at troubled asset manager Gryphon USA, said in a press release released Monday that he was concerned about the backlog and the costs of the eviction ban.
Kruse expressed concern that the stimulus plan might not cover its costs, but noted that the number is "difficult to quantify".
The National Council of State Housing Agencies estimated that tenants in the larger rental market had overdue rents between $ 34 billion and $ 70 billion as of December 31. The plan outlined on Jan. 14 would provide $ 30 billion in rental support, Kruse said.
"A maximum of billions of newly printed money pay a certain amount of rent back and some criminal utilities," said Kruse. "Tenants are still behind, landlords may still be behind, and there is still no plan for what happens next."
Some policy advisors believe that the final shape of the stimulus package could postpone the end date for foreclosure and eviction bans by a few months.
“Remember, this is a starting point that will be negotiated in Congress. I doubt rent relief will be negotiated in this environment, but the moratoriums could be reduced to the end of June, ”said Tim Rood, Head of Industry Relations at SitusAMC, in a report posted online on Thursday that is likely to be hotly debated. "