Trump Signs Coronavirus Relief Bill; Admin Protects Homeowners From Foreclosure

President Donald Trump signed a bill into law on Wednesday night that provides critical support to Americans impacted by the coronavirus.

The bill provides “sick leave, unemployment benefits, free coronavirus testing, and food and medical aid to people affected by the pandemic” that originated in China, The New York Times reported. “Lawmakers and the White House are already drafting another economic stabilization package that would send direct payments to taxpayers and provide loans to businesses.”

“This is a time for urgent bipartisan action, and in this case, I do not believe we should let perfection be the enemy of something that will help even a subset of workers,” Senate Majority Leader Mitch McConnell (R-KY) said. “Just how long it will take to get through these steps is unclear, but as everyone knows we are moving rapidly because the situation demands it.”

The move comes after the Federal Housing Finance Agency announced on Tuesday that it was enacting foreclosure protections that would cover a vast majority of Americans for the next two months.

“To help borrowers who are at risk of losing their home, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac (the Enterprises) to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage,” FHFA said in a statement. “Earlier this month, FHFA announced that the Enterprises would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.”

Director Mark Calabria said, “This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency.”

“As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible,” Calabria continued. “The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”

Earlier in the day, Trump invoked the Defense Production Act of 1950 to juice up the private sector’s ability to manufacture and distribute emergency medical supplies.

Fox News highlighted the three main sections of of the Defense Production Act:

• Companies are required to accept and prioritize contracts from the government and to prioritize “materials, services, and facilities to promote the national defense or to maximize domestic energy supplies.” While this provision has historically been used to ramp up military production, in the midst of the COVID19 pandemic the act will be used for medical supplies.
• The second provision in the act provides financial measures, such as loans, loan guarantees, purchases, and purchase commitments, to speed up the production of materials “needed to support national defense and homeland security procurement requirements.”
• The act also addresses voluntary agreements – or what the government says is “an association of private interests, approved by the Government to plan and coordinate actions in support of the national defense.” The proviso permits business competitors to work together to plan and coordinate measures to increase the supply of materials.

Trump wrote on Twitter: “I only signed the Defense Production Act to combat the Chinese Virus should we need to invoke it in a worst case scenario in the future. Hopefully there will be no need, but we are all in this TOGETHER!”

I only signed the Defense Production Act to combat the Chinese Virus should we need to invoke it in a worst case scenario in the future. Hopefully there will be no need, but we are all in this TOGETHER!

— Donald J. Trump (@realDonaldTrump) March 18, 2020