Rep. Cleaver Applauds FHFA’s Suspension of Foreclosures on Borrowers Applying for Relief Through Homeowner Assistance Fund

(Washington, D.C.) – Today, U.S. Representative Emanuel Cleaver, II (D-MO), Chairman of the Financial Services Subcommittee on Housing, Community Development, and Insurance, applauded the Federal Housing Finance Agency's (FHFA) announcement that Fannie Mae and Freddie Mac will require servicers to immediately suspend foreclosure activities for up to 60 days if the servicer has been notified that a borrower has applied for assistance under the Department of Treasury's Homeowner Assistance Fund (HAF).

"As America continues to battle economic instability brought by the COVID-19 pandemic and Russia's ruthless invasion of Ukraine, President Biden and his administration are doing everything possible to keep hardworking families in their homes—and I couldn't be more supportive of that effort," said Congressman Cleaver. "While Missouri and other states throughout the Union continue to process emergency homeowner assistance provided by Congress through the American Rescue Plan, it's critical that servicers give struggling homeowners the time necessary to be evaluated for relief through the Homeownership Assistance Fund. This step from the FHFA will ensure Missouri families don't unnecessarily lose their homes during that process."

"FHFA is committed to sustainable homeownership. Today's action will provide borrowers who need temporary mortgage assistance with additional time to be evaluated for relief through their state's approved Homeownership Assistance Fund," said FHFA Acting Director Sandra L. Thompson.

Although many homeowners have benefited from mortgage forbearance or foreclosure moratoriums, there are ongoing concerns about homeowners' ability to resume mortgage payments and repay past due amounts. The American Rescue Plan Act, supported by Congressman Cleaver, provided nearly $10 billion for states, territories, and tribal entities to provide financial relief to homeowners through the Homeowner Assistance Fund administered by the Department of Treasury. States can use the funds to assist homeowners with certain qualified expenses related to their housing costs in order to prevent mortgage delinquency, default, foreclosure, displacement or loss of utility or home energy services. Missourians who are still in need of emergency homeowner assistance can apply through the Missouri State Assistance For Housing Relief (SAFHR) for Homeowners program here.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Blue Springs, Grain Valley, Oak Grove, North Kansas City, Gladstone, Claycomo, and all of Ray, Lafayette, and Saline Counties. He is a member of the exclusive House Financial Services Committee; Chairman of the House Subcommittee on Housing, Community Development, and Insurance; member of the Select Committee on the Modernization of Congress; member of the Committee on Homeland Security; and a Senior Whip of the Democratic Caucus. A high-resolution photo of Congressman Cleaver is available here.