Biden Administration Extends Mortgage Forbearance Again

President Joe Biden has moved to prolong mortgage forbearance for another six months and extend the foreclosure moratorium until June 30. So reports CNBC.

The steps by the Federal Housing Agency will affect 70% of existing single-family home mortgages, according to the White House.

“The steps we are taking today will provide both immediate relief to those in desperate need of assistance and help more homeowners keep their homes and resume their payments when the pandemic subsides,” Matthew Ammon, acting secretary of Department of Housing and Urban Development, said in a press release.

Read the full article from CNBC. 

Source: themortgageleader.com

HUD extends COVID-19 forbearance for FHA loans

The U.S. Department of Housing and Urban Development on Tuesday extended COVID-19 foreclosure and forbearance moratoriums for FHA and USDA loans to June 30, 2021. It also extended the deadline for the first legal action and the reasonable diligence time frame to 180 days.

This announcement follows FHFA action last week to extend moratoriums for loans backed by Fannie Mae and Freddie Mac.

The measures announced by HUD today include:

  • Extending the timeframe for homeowners to request the start of a COVID-19 forbearance from their mortgage servicer through June 30, 2021.
  • Expanding the COVID-19 forbearance to allow up to two forbearance extensions of up to three months each for homeowners who requested a COVID-19 forbearance on or before June 30, 2020. These extensions are designed to provide relief to homeowners who will be nearing the end of their maximum 12-month forbearance period and have not yet stabilized their financial situation.
  • Expanding the use of FHA’s streamlined COVID-19 loss mitigation home retention and home disposition options to all homeowners who are behind on their mortgage payments by at least 90 days. This expansion will require mortgage servicers to assess more homeowners for a streamlined waterfall of loss mitigation home retention options, starting with FHA’s COVID-19 Standalone Partial Claim.

Mortgage servicers take steps to support borrowers amid COVID-19

As call volumes have spiked to a level not seen since last April, lenders and servicers need to prepare for a significant increase in their workload as they help borrowers through difficult times.

Presented by: Computershare Loan Services

“As President Biden has made clear, it is urgent that we help homeowners throughout the nation who are struggling financially from this unprecedented national emergency,” said Acting HUD Secretary Matthew Ammon. “The steps we are taking today will provide both immediate relief to those in desperate need of assistance and help more homeowners keep their homes and resume their payments when the pandemic subsides.”

Last week, the FHFA announced that borrowers with mortgages backed by Fannie Mae and Freddie Mac may be eligible for an additional forbearance extension of up to three months. FHFA forbearance plans initially had a 12 month expiration date, however, the government entity is now allowing borrowers up to 15 months of coverage.

According to the agency, eligibility for the extension is limited to borrowers who are on a COVID-19 forbearance plan as of Feb. 28, 2021. The FHFA said other limits may apply to the extension but did not provide specific detail.

Source: housingwire.com

HUD extends waivers for FHA reverse mortgages

In a bid to aid borrowers, the Department of Housing and Urban Development announced on Wednesday a series of temporary waivers that will allow servicers to use alternative methods when servicing FHA-insured forward and reverse mortgages.

Rather than conducting face-to-face interviews, HUD’s waiver will allow substitute methods for servicers to conduct borrower interviews for FHA-insured forward and reverse mortgages when performing early default interventions, specifically for borrowers in danger of foreclosure.

Alternative methods HUD listed included phone interviews, video calling services and other conference technology.

HUD also said it is waiving the $5,000 property charge payment arrearages cap for reverse mortgage borrowers who are behind on payments.

Under existing policy, when a borrower fails to make two consecutive payments on a HECM repayment plan, the plan fails and servicers may only offer the borrower a new repayment plan if the borrower’s total arrearage is less than $5,000. The new waiver will allow servicers to evaluate impacted borrowers regardless of how far behind they are.


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HUD will also waive the requirement for servicers to obtain a signature on an occupancy certification from a HECM borrower. While HUD requires mortgagees must continue to obtain the HECM borrower’s annual certification, the physical signature requirement is temporarily eliminated.

“President Biden has made it clear that protecting the health, safety, and homeownership security of the nation’s most vulnerable populations, including seniors, are urgent and immediate priorities,” said acting HUD secretary, Matthew Ammon. “The policy waivers issued today are another important step in addressing these priorities.”

HUD had previously released several variations of these waivers originally announced on Dec. 17, 2020 but were set to expire Feb. 28, 2021. However, with no clear route of the virus and the deployment of a vaccine, this latest set of temporary waivers is not set to runout until Dec. 31, 2021.

According to a release, the agency hopes to align these waivers with President Biden’s “Day One” request to provide aid to homeowners struggling from COVID-19. Prior to that request, the FHA extended its foreclosure and eviction moratorium for borrowers with FHA-insured single family mortgages through March 31, 2021.

FHA also extended the deadline for borrowers financially impacted by COVID-19 to request a new forbearance from their mortgage servicer through March 31, 2021.

Source: housingwire.com