Sept 27, 2021, the Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2021-24, Extension for COVID-19 Forbearance and COVID-19 Home Equity Conversion Mortgage (HECM) Extensions.
This ML provides:
- Up to six months of COVID-19 Forbearance for borrowers requesting their initial COVID-19 Forbearance on October 1, 2021, through the end of the COVID-19 National Emergency, and an additional six months if the forbearance is exhausted or expires before the end of the COVID-19 National Emergency.
This new option is meant to assist those borrowers who may be newly affected financially by the COVID-19 pandemic and may need relief through the end of the National Emergency.
- An additional six months of forbearance for borrowers who requested their initial COVID-19 Forbearance between July 1, 2021, and September 30, 2021.
This ML also provides the opportunity for additional periods of COVID-19 HECM Extension for HECMs when the initial request is made on October 1, 2021, through the end of the COVID-19 National Emergency, and when the initial COVID-19 HECM Extension request was made between July 1, 2021, and September 30, 2021.
Due to the continuing impacts of the COVID-19 pandemic, particularly the Delta variant, FHA recognizes the need to provide these extension opportunities for the COVID-19 Forbearance and HECM Extension to help those still impacted by the pandemic and who only recently requested assistance or who may need assistance through the end of the COVID-19 National Emergency.
The policies regarding COVID-19 Forbearance and COVID-19 HECM Extensions announced today are effective immediately. Mortgagees and other interested stakeholders are encouraged to thoroughly review ML 2021-24.