In a recently published blog post, the Consumer Financial Protection Bureau advised HECM borrowers and eligible non-borrowing spouses who have been impacted by COVID-19 and face default and foreclosure to immediately contact their loan servicer to take advantage of the government’s relief measures.
“Ask your loan servicer to delay calling your loan due and payable. You must ask for an initial extension no later than June 30, 2021. Upon your initial request, your lender or loan servicer must delay calling your loan due and payable for up to six months,” says the CFPB. “If needed, an additional extension period not to exceed six months may be approved by HUD. You do not need to provide any documentation to your lender or loan servicer to receive an extension. During the extension period, your lender or loan servicer cannot charge any late fees and penalties. Interest will continue to accrue.”
In addition to this blog post, don’t forget to share another CFPB document that we profiled in last week’s issue of Weekly Report — You Have a Reverse Mortgage: Know Your Rights and Responsibilities — which is now available for download on NRMLA’s consumer site, ReverseMortgage.org.