In a series of Mortgagee Letters, each dated December 17, 2020, the U.S. Department of Housing and Urban Development (HUD) extended the dates of various policies addressing the COVID-19 national emergency.
In Mortgagee Letter 2020-44, HUD extended the date for approving an initial COVID-19 forbearance with an FHA loan, or a COVID-19 extension with a home equity conversation mortgage (HECM) loan (i.e., a reverse mortgage loan), from December 31, 2020, to February 28, 2021. The means of communication with borrowers regarding a COVID-19 forbearance and the terms of a COVID-19 forbearance remain the same as established in Mortgagee Letter 2020-06 and Mortgagee Letter 2020-22. The guidance applies to all FHA Title II single-family mortgage programs.
In Mortgagee Letter 2020-45, HUD extended from December 31, 2020, to March 31, 2021, the guidance for the endorsement of mortgage loans when the borrower has been granted a COVID-19 forbearance. The guidance applies to all FHA Title II single-family forward mortgages, except non-FHA to FHA cash-out refinance loans.
In Mortgagee Letter 2020-46, HUD extended from December 31, 2020, the following: (1) the guidance regarding the verification of business operations for self-employed borrowers and the use of rental income for qualification purposes now applies to loans for which case numbers are assigned on or before February 28, 2021, and (2) the guidance regarding rehabilitation escrow accounts in connection with 203(k) loans now applies to open escrow accounts through February 28, 2021. The guidance regarding verification of business operations and use of rental income applies to all FHA Title II single-family forward mortgages and HECM programs, and the escrow account guidance applies solely to the 203(k) rehabilitation program.
In Mortgagee Letter 2020-47, HUD extended from December 31, 2020, the following: (1) the guidance regarding the re-verification of employment requirements now applies to cases closed on or before February 28, 2021, and (2) the guidance regarding the option to use exterior-only appraisals now applies for appraisals with an effective date on or before February 28, 2021. The guidance applies to FHA single-family Title II forward and reverse mortgage programs.