HUD Extends COVID-19 Relief Measures

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On February 16, 2021, HUD published Mortgagee Letter 2021-05. This mortgagee letter, which is effective immediately, provides for a number of COVID-19 related extensions and relief options. These include, among other things, the following:

  • The foreclosure and eviction moratorium has been extended to June 30, 2021; additionally, HUD has extended the deadline for the first legal action, and the Reasonable Diligence Time Frame, to 180 days.
  • HUD requires mortgagees to approve the initial COVID-19 Forbearance or HECM Extension Period no later than June 30, 2021.
  • Eligible borrowers may now receive more than one COVID-19 Home Retention Option.
  • HUD has temporarily expanded the eligibility of COVID-19 Loss Mitigation Options to borrowers who did not previously participate in forbearance related to COVID-19, but who are 90 or more days delinquent and affirm that they have been negatively impacted by COVID-19.
  • Borrowers who requested initial COVID-19 Forbearance on or before June 30, 2020 may now request up to 2 additional 3-month COVID-19 Forbearance periods, once the initial 12-month period has expired.  Each such extension must be requested individually. Neither of these two additional extension periods may extend beyond December 31, 2021, and no COVID-19 Forbearance may extend beyond June 30, 2022.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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