The Federal Housing Administration (FHA) announced new and extended COVID-19 relief options for borrowers recently or newly struggling to make their mortgage payments because of the pandemic and for senior homeowners with Home Equity Conversion Mortgages (HECMs) who need assistance to remain in their homes. These measures respond to the continued impacts of the pandemic and are part of FHA’s continuing evolution of its COVID-19 policies 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: FHA is now providing up to six months of COVID-19 forbearance for borrowers requesting an initial COVID-19 forbearance or HECM extension from their mortgage servicer between Oct.1, 2021, and the end of the COVID-19 national emergency, and an additional six months if the COVID-19 forbearance or HECM extension is exhausted and expires before the end of the COVID-19 national emergency.
- An additional COVID-19 forbearance or HECM extension period for borrowers recently seeking assistance: FHA is now providing up to six months of additional forbearance for borrowers who requested or will request an initial COVID-19 Forbearance or HECM extension from their mortgage servicer between July 1, 2021, and Sept. 30, 2021, allowing these borrowers up to a maximum of 12 months of COVID-19 forbearance or HECM Extension.
“Our top priority is to help as many individuals and families as possible to recover from the COVID-19 pandemic and keep their homes,” said Principal Deputy Assistant Secretary for Housing Lopa Kolluri in a statement. “For FHA, this means that we will continue to work through all of our channels—mortgage servicers, housing counselors, and our other federal partners—to ensure we get the positive outcomes struggling homeowners need.”
See additional details here.