Sunday, 7 March 2021 | The Latest Buzz for the Appraisal Industry

HUD Extends Forbearance For FHA Borrowers Impacted by COVID-19

The U.S. Department of Housing and Urban Development (HUD) has extended its relief to homeowners and renters who are experiencing economic impacts related to the COVID-19 pandemic.

Borrowers who have an FHA, VA or USDA-backed mortgage now have until June 30 to  request a forbearance plan under the provisions of the CARES Act.

Last week, the Federal Housing Finance Agency, regulator of Fannie Mae and Freddie Mac, announced that the companies would be extending their borrower assistance periods through March 31.

HUD is also providing protection for renters who live in HUD multifamily housing by extending its moratorium on evictions. 

These measures will provide relief to the nation’s homeowners with FHA-insured single family mortgages who continue to suffer financially because of the COVID-19 pandemic, HUD says in a release.

“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,” says 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.”

The extension of the foreclosure and eviction moratoriums applies to all homeowners with an FHA-insured forward or Home Equity Conversion Mortgage (HECM) loan, and homeowners with a Section 184 or Section 184A mortgage loan, except for properties that are legally vacant or abandoned, through June 30, 2021.

HUD prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions during the moratoriums. HUD also extended the deadlines for the first legal action and reasonable diligence timeframes for servicers to 180 days from the date of expiration of the foreclosure and eviction moratorium.

Photo: Behnam Norouzi

The post HUD Extends Forbearance For FHA Borrowers Impacted by COVID-19 appeared first on MortgageOrb.

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