Iowa Supreme Court & FHA Extend Eviction Protections

On Monday, December 21, 2020, the Federal Housing Administration (the “FHA”) issued a two-month extension to the foreclosure and eviction moratorium for single family homes with FHA-backed mortgages. This was the fourth such extension of the moratorium, which was enacted in response to the coronavirus pandemic and its economic impact. The FHA also extended to February 28, 2021 the deadline for homeowners with FHA-backed mortgages to request an initial six-month forbearance period as a result of coronavirus-related financial difficulty. Borrowers who previously were granted a six-month forbearance have until March 31, 2021 to request an additional six-month forbearance period.

Additionally, the FHA extended certain temporary, safety-related guidelines for lenders and servicers of FHA mortgages. Lenders and servicers now have until March 31, 2020 to provide an insurance endorsement on single-family mortgages in forbearance. Additionally, lenders and servicers of FHA mortgages can, until February 28, 2021, elect to have exterior-only inspections performed.

The FHA serves as insurer on over 8 million mortgages in the United States.

Likewise, on December 20, 2020, the Iowa Supreme Court extended its protections in forcible entry and detainer cases for tenants who are suffering financial distress as a result of the coronavirus pandemic and are being evicted solely for non-payment of rent. In particular, if a tenant submits a signed declaration stating that they have, among other things, suffered financial hardship as a result of the pandemic, Iowa courts are to continue the case until January 31, 2021 or, “if necessary,” dismiss the action without prejudice.

If you have questions about the FHA or Iowa moratoriums, or have any other questions regarding COVID-19’s impact on your business, contact Nyemaster Goode’s Creditor Rights team. Nyemaster’s Creditor Rights team offers a collaborative approach, with lawyers providing expertise in banking, secured transactions, foreclosures, out-of-court workouts and restructurings, bankruptcy, collections, and distressed commercial litigation.