This week, the Federal Housing Administration published Mortgagee Letter (ML) 2020-12, which gives servicers the ability to submit alternative documentation for assignment claims and extends delivery deadlines for assignment claims impacted by the Presidentially-Declared COVID-19 National Emergency.
The policies in the mortgagee letter took effect immediately and will be in place for assignment claims requests submitted on or before October 30, 3020.
According to ML 2020-12, some documentation required for payment of a CT-22 Assignment Claim is currently difficult or impossible to obtain given COVID-19 related closures around the country. Therefore, HUD will accept the following alternative documentation, in addition to existing policy, as evidence of eligibility for an assignment claim payment on the following specific items:
- To document that taxes are current, a report from a tax monitoring service indicating that property taxes are not delinquent;
- To evidence that Homeowners’ Association (HOA) /Condominium fees are current, a statement from a Mortgagee that HOA or Condominium dues are not delinquent; and
- In lieu of the annual occupancy certification signed by the borrower, an emailed or verbal certification from a borrower that they are occupying their property as a principal residence.
“The workflow associated with the HECM assignment process is detailed and complicated, and this workflow has been frustrated by the challenges presented by the COVID 19 virus,” says NRMLA President Steve Irwin. “NRMLA and its members are grateful for the actions taken by HUD via this mortgagee letter to help facilitate a more effective and efficient assignment process.”