The Federal Housing Administration this week issued FHA INFO #20-64 as a clarification to mortgagees about its guidance for originating and/or servicing FHA-insured mortgages in locations in the U.S. and its territories when the President declares a major disaster area during the COVID-19 pandemic.
FHA said it recognizes the difficulty facing many borrowers across the country in light of recent hurricanes, wildfires and other extreme weather events in the midst of a pandemic. The guidance in FHA INFO #20-64 is intended to provide clarity to borrowers and industry partners. As it pertains to HECMs, FHA said:
- FHA-insured HECMs that become due and payable for reasons other than the death of the last surviving borrower and eligible non-borrowing spouse are subject to a 90-day extension of HECM foreclosure timelines, as most recently provided for in FHA INFO 18-40; and
- In addition to the provisions found in FHA INFO 18-40, FHA is providing HECM mortgagees an automatic 90-day extension from the date of the PDMDA foreclosure expiration date to commence or recommence a foreclosure action.
Mortgagees can find more information about the policies referenced above and other FHA PDMDA and FHA COVID-19 policies on the FHA Resource Center’s Online Knowledge Base.