HUD: FHA INFO #21-06: COVID-19 Forbearance and HECM Extension

HUD: FHA INFO #21-06: COVID-19 Forbearance and HECM Extension

Investor Update
January 26, 2021

Source: HUD

In support of the Biden Administration’s plan to provide economic relief for the individuals and families suffering financial impacts from the coronavirus pandemic, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2021-04Update to the COVID-19 Forbearance Start Date and the COVID-19 Home Equity Conversion Mortgage (HECM) Extension Period today.

Effective immediately, this ML extends through March 31, 2021, the deadline for single family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months. If needed, this forbearance can be extended for an additional six months. This ML also extends the deadline to request the initial extension period for HECM borrowers impacted by the COVID-19 pandemic.

The means of communication between a borrower and their mortgage servicer regarding a COVID-19 forbearance, and the terms of the COVID-19 forbearance, remain the same as established in ML 2020-06 and ML 2020-22.

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