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HUD to extend foreclosure moratorium for 8.1 million

The Department of Housing and Urban Development announced Tuesday that it will extend the moratorium on evictions and home foreclosures for 8.1 million American households that have federally-backed home loans, Politico reports.

“We are looking at a myriad of options to ensure the American people do not lose their homes during the Coronavirus pandemic,” HUD spokesman Brad Bishop said Tuesday.

The announcement from HUD comes a little more than one week after President Trump signed an executive memo asking the federal department to investigate ways to prevent evictions.  Trump did so at his Bedminster country club in front of an audience of members who paid a $350,000 club initiation fee.

The HUD order reportedly is not finalized yet, and this proposal only covers mortgages insured by the Federal Housing Authority.  It does not prevent evictions or foreclosures on homes backed by Fannie Mae and Freddie Mac, the government-run companies that guarantee about half of the U.S. residential mortgage market.

Trump had spent the last two weekends at his New Jersey golf club, leaving negotiations for a new coronavirus relief package staffed out to his Chief of Staff and his Treasury Secretary.  The republican Senate Majority Leader, Mitch McConnell, is campaigning in a tight race in his home state of Kentucky.

The Democratic-led House passed a $3.5 trillion aid package back in May.  In the Senate, McConnell could not unite the republican caucus on a $1 trillion deal, passing off responsibility to the White House.

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