HUD: FHA INFO #21-61: COVID-19 Recovery Loss Mitigation Options

HUD: FHA INFO #21-61: COVID-19 Recovery Loss Mitigation Options

Investor Update
July 23, 2021

Source: HUD

Today, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2021-18COVID-19 Recovery Loss Mitigation Options. This ML reinforces FHA’s commitment to helping homeowners who have been financially impacted by the COVID-19 pandemic to remain in their homes with new, streamlined loss mitigation options. Read today’s Press Release.

This ML amends FHA’s COVID-19 Loss Mitigation policies for borrowers with FHA-insured forward mortgages, as found in Section III.A.2.o., Presidentially-Declared COVID-19 National Emergency, of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). It establishes the COVID-19 Recovery Loss Mitigation Options (COVID-19 Recovery Options) “waterfall” that streamlines and revises FHA’s previous options for struggling homeowners, reduces documentation requirements, and provides greater payment reduction options for eligible homeowners with FHA-insured Single Family Title II forward mortgages.

To view full announcement, please click the source link above.