Today, the Federal Housing Administration issued temporary partial waivers that provide mortgagees with expanded flexibility to help HECM borrowers who are struggling financially due to COVID-19. Details were provided in FHA INFO #21-70 and include:
- A temporary partial waiver of Mortgagee Letter 2015-11. This waiver allows mortgagees to offer repayment plans to HECM borrowers with unpaid property charges regardless of their total outstanding arrearage and is effective through June 30, 2022.
- A temporary partial waiver of Mortgagee Letter 2016-07. This waiver permits mortgagees to seek assignment of a HECM immediately after using their own funds to pay unpaid property taxes and insurance on or after March 1, 2020. Additionally, it eliminates the three-year waiting period for such assignments. The waiver is effective through June 30, 2022.
“We commend FHA and HUD for exploring all available options to assist senior borrowers who have been impacted by this pandemic,” says Gail Balettie, SVP Client Satisfaction at Celink and Co-Chair of NRMLA’s Servicing Committee. “These temporary waivers will give mortgagees the flexibility to further assist impacted borrowers to avoid having their loans called due and payable, and potentially having to foreclose on their homes, as a result of life events beyond their control. We applaud this flexibility and look forward to continue working with FHA and HUD to further improve the HECM program.”