FHA Expands COVID-19 Forbearance Choices — RISMedia |
The Federal Housing Administration (FHA) announced new and expanded COVID-19 relief options for borrowers who have recently struggled to make their mortgage payments due to the pandemic and for seniors with Home Equity Conversion Mortgages (HECMs) in need of assistance to stay in their apartment houses. These measures are responsive to the ongoing effects of the pandemic and are part of the ongoing evolution of the FHA’s COVID-19 guidelines so that the right tools are in place to help borrowers.
Specifically, FHA made the following changes:
- A new COVID-19 forbearance or HECM extension period for borrowers who may be newly affected by the pandemic: The FHA is now offering borrowers who apply for an initial COVID-19 forbearance or HECM extension from their mortgage administrator between October 1, 2021 and the end of the national COVID-19 emergency, up to six months of COVID-19 forbearance, and an additional six months if the COVID-19 cease and desist or HECM extension is exhausted and expires before the end of the national COVID-19 emergency.
- An additional COVID-19 cessation or HECM extension period for borrowers recently seeking help: FHA is now offering borrowers who requested or will apply for an initial COVID-19 forbearance or HECM extension from their mortgage servicer between July 1, 2021 and September 30, 2021, up to six months of additional deferral, allowing these borrowers up to a maximum of 12 months COVID-19 Forbearance or HECM Extension.
“Our top priority is to help as many individuals and families as possible recover from the COVID-19 pandemic and keep their homes,” said Lopa Kolluri, assistant chief secretary for housing. “For FHA, this means we will continue to work across all of our channels – mortgage servants, housing advisors, and our other federal partners – to ensure we get the positive results that homeowners have in trouble.”
More details can be found here.