To help combat the COVID-19 pandemic, FHA issued a series of waivers of provisions in its Single Family Housing Policy Handbook 4000.1 that would normally require in-person contact between mortgage servicers and borrowers, including seniors with FHA-insured reverse mortgages, through December 31, 2021. The waivers:
- Allow alternative methods for servicers to conduct borrower interviews for FHA-insured forward and HECM mortgages when performing early default interventions for borrowers in danger of foreclosure;
- Waive the $5,000 property charge payment arrearages cap on recalculated repayment plans, allowing servicers to help more HECM borrowers who are behind on their property charge payments; and
- Eliminate the requirement for servicers to obtain a signature on an occupancy certification from a HECM borrower.
“Servicers applaud FHA and HUD’s continued commitment to the HECM program and to affording HECM borrowers and servicers flexibility in some processes during the pandemic,” says Gail Balettie, senior vice president of Client Satisfaction, Celink, Austin, TX and co-chair of NRMLA’s Servicing Committee. “We look forward to continuing to partner with FHA/HUD to communicate and meet the needs of HECM borrowers.”
Read the full press release.