Department of Housing and Urban Development (HUD) Secretary Scott Turner announced a 90-day foreclosure moratorium on Federal Housing Administration (FHA)-insured single-family mortgages in the areas of Kerr County, Texas, that have been impacted by the severe flooding that began on July 2.
There are more than 900 FHA-insured mortgages in the Kerr County Presidentially Declared Major Disaster Area. The moratorium prohibits mortgage servicers from initiating or completing foreclosure actions on FHA-insured single family forward or Home Equity Conversion mortgages within the impacted area.
“Our hearts break as we witness the catastrophe unfolding in Texas,” said Turner. “The flash floods have claimed the lives of more than 100 Americans and displaced countless others. It is an unfathomable tragedy, and HUD will continue to provide resources and support as we pray for the Texas Hill Country community.”
Separately, the Office of the Comptroller of the Currency announced it would allow national banks, federal savings associations and federal branches and agencies of foreign banks directly affected by potentially unsafe conditions in the flood-impacted areas to close. However, the agency also said these offices “should make every effort to reopen as quickly as possible to address the banking needs of their customers.”
Photo: WCKitchen / Flickr Creative Commons
