HUD Establishes COVID-19 HECM Property Charge Repayment Plan

HUD Establishes COVID-19 HECM Property Charge Repayment Plan

The Department of Housing and Urban Development established a new repayment plan option for HECM borrowers who continue to suffer financially from the impacts of the COVID-19 pandemic and are having problems paying their property taxes, homeowners insurance and other required property charges.

The new COVID-19 HECM Property Charge Repayment Plan allows mortgage servicers to offer eligible homeowners up to five years to repay property charges that the servicer advances on the homeowner’s behalf when the homeowner is unable to make these payments. Details were provided in Mortgagee Letter 2022-23.

“For senior homeowners, recovering from the financial effects of the pandemic may be especially challenging,” said FHA Commissioner Julia Gordon. “The new repayment plan option announced today will give more seniors behind on their property charges the opportunity to fulfill the obligations of their HECM and remain in their homes.”


  • Borrowers may receive a repayment plan regardless of the dollar amount of property charge payments owed;
  • Repayment plans are available to borrowers who have applied for Homeowner Assistance Funds, if the HAF funds combined with the borrower’s ability to repay will satisfy the servicer’s advances for the delinquent property charges;;
  • Servicers can offer homeowners a repayment plan of up to five full years (60 months) regardless of any prior repayment plan usage; and
  • Servicers can offer the COVID-19 HECM Property Charge Repayment Plan for up to one year after the end of the COVID-19 National Emergency.

To be eligible, borrowers must attest that they have been impacted by the COVID-19 pandemic, which can be a verbal statement to the servicer. Download a copy of ML 2022-23 to learn more.

Published by

Darryl Hicks

Darryl Hicks is Vice President of Communications for the National Reverse Mortgage Lenders Association. In this capacity, Hicks writes for NRMLA's publications, manages the association's web sites and social media accounts, assists committees and the Board of Directors, and manages the Certified Reverse Mortgage Professional designation. Prior to joining NRMLA in 1999, Hicks spent three years in the Washington, D.C. bureau for National Mortgage News.