The Federal Housing Administration published a technical update to Mortgagee Letter 2021-15 that will provide additional time for borrowers economically impacted by the COVID-19 pandemic to seek relief.
Details were provided this week in Mortgagee Letter (ML) 2022-02.
ML 2022-02 clarifies that the first legal deadline and Reasonable Diligence Time Frame are extended by 180 days from the later of either:
- the expiration of the foreclosure moratorium for FHA-insured Single Family Mortgages; or
- the expiration of the borrower’s COVID-19 forbearance or Home Equity Conversion Mortgage COVID-19 extension period.
“NRMLA applauds the issuance of ML 2022-02. This clarifying guidance is a win/win for HECM borrowers and for our HECM Servicer Members,” says NRMLA President Steve Irwin. “This guidance provides full access to the available due and payable timelines for HECM borrowers who may need additional time to resolve property charge delinquencies, and clearly defines the due diligence timelines for Servicers. NRMLA had been communicating with HUD on the need for such clarifications, and we are delighted to see these clarifications through this ML.”