HECM borrowers who have been impacted by COVID-19 and are facing foreclosure have been granted an extension through June 30, 2021 to request a six-month delay in having their loans called due and payable. Details were provided in Mortgagee Letter 2021-05.
The ML:
- Extends the foreclosure and eviction moratoriums through June 30, 2021, and provides a 180-day extension to the deadlines for the first legal action and the reasonable diligence time frame from the date of the moratorium expiration;
- Extends the dates to request an initial COVID-19 Forbearance or a COVID-19 HECM extension period through June 30, 2021;
- Adds two COVID-19 Forbearance and COVID-19 HECM extension periods of up to three months each for borrowers who requested their initial COVID-19 Forbearance or COVID-19 HECM extension period on or before June 30, 2020, and are coming to the end of their 12 month period;
- Expands eligibility for the COVID-19 loss mitigation options for certain borrowers regardless of whether they received a COVID-19 Forbearance; and
- Eliminates the restriction on the number of permanent COVID-19 home retention options a borrower can receive.
NRMLA will be organizing a webinar in the near future to help members better understand what these extensions mean, and what relief is being provided, for their clients.