Date: February 25, 2021
To: All Scheer Law Group Clients and Affiliates
From: Spencer Scheer and Joshua Scheer
Subject: The Beat Goes on: FNMA and FHLMC Extend Foreclosure Moratorium Through June 2021. Let’s go out for Lunch!
Foreclosure and Forbearance Continue. Previously, the Biden Administration announced that it would continue the foreclosure moratorium on covered federally backed loans through June 2021. ( i.e. HUD, VA, Dept. of Ag.) Now FNMA and FHLMC have joined the party, extending through June of 2021. Also buried in the various announcements is further extension of extended forbearance for many who had reached the allowed limits. Note: These moratoriums apply to federally backed mortgages.
In 1977 Milton Friedman gave a classic lecture on five economic myths that conceal reality. One of them is that there is no free lunch. That is to say, someone has to pay when the government “gives something away.” The Fed is hoping that it can keep rates low and QE purchases to the max, while we eat, so we don’t notice that our dollars buy less and less (inflation), while bond rates tic up. I know many of SLG clients are hoping that the asset bubble remains inflated while we eat, because if it does not, who will want to pay back all the forbearance on deflated assets when forbearance is over?
Anyway I have to go, it is lunch time.
Please call or email if you have any questions.