WASHINGTON (AP) – President Joe Biden has extended a ban on home commitments until June 30 to help homeowners struggling during the coronavirus pandemic.
The moratorium on the ban on federal-guaranteed mortgages would expire on March 31. On his first day in office, Biden extended the moratorium from January 31st. Figures from the Census Bureau show that almost 12% of homeowners were late with a mortgage loan. payments.
The White House says the coordinated actions announced by the Departments of Housing and Urban Development, Veterans Affairs and Agriculture on Tuesday will also extend the registration window to June 30 for borrowers who want to request the tolerance of mortgage loans – an interruption or reduction of payments – up to six additional months’ tolerance to borrowers who entered into tolerance on or before 30 June last year.
The White House says more than 10 million homeowners are in arrears with mortgage loans, and Biden’s actions are to keep people in their homes amid an “affordable housing crisis” caused by the pandemic. It says ‘homeowners will be in dire need of relief if we face this unprecedented national emergency.’
Biden’s administration says the extension of tolerance policies “will provide critical support to homeowners of color, who are an excessive part of the borrowers”, who are struggling to repay their loans due to pandemic-related hardships.
The actions announced Tuesday do not address a federal moratorium until March 31 on evictions of tenants who have lagged behind.