The Federal Housing Finance Agency has announced that government-sponsored enterprises Fannie Mae and Freddie Mac will extend moratoriums on foreclosures and real estate owned evictions until at least Dec. 31, 2020.

The moratorium applies to single-family mortgages backed by Fannie Mae or Freddie Mac, and the eviction moratorium applies to properties that have been acquired by Fannie Mae or Freddie Mac through foreclosure or deed-in-lieu of foreclosure transactions. This replaces the moratorium set to expire on Aug. 31.

“To help keep borrowers in their homes during the pandemic, FHFA is extending the enterprises' foreclosure and eviction moratoriums through the end of 2020," says director Mark Calabria. “This protects more than 28 million homeowners with an enterprise-backed mortgage."

The FHFA projects additional expenses of $1.1 to $1.7 billion stemming from the moratorium and its extension.