FHA Extends Foreclosure Moratorium and Exterior-Only Appraisals

FHA Extends Foreclosure Moratorium and Exterior-Only Appraisals

Today, the Federal Housing Administration published multiple mortgagee letters that extend a foreclosure and eviction moratorium and other COVID-19 protections for forward mortgage borrowers and reverse mortgage borrowers through February 28, 2021.

Here is a list of the mortgagee letters and what they do:

1) Mortgagee Letter 2020-43 announces the fourth extension of FHA’s eviction and foreclosure moratorium. The moratorium prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties;

2) Mortgagee Letter 2020-44 extends deadlines associated with the due and payable dates for HECM borrowers impacted by the COVID-19 pandemic;

3) Mortgagee Letter 2020-46 extends guidance related to
verification of self-employment and verification of rental income;

4) Mortgagee Letter 2020-47 extends the use of exterior-only appraisals.

NRMLA will continue to monitor these policies and report to the membership of any further changes.