FHA Announces COVID-19 Relief for Borrowers

The Federal Housing Administration yesterday announced relief for FHA mortgage borrowers unable to make payments because of the coronavirus pandemic. FHA servicers must extend forbearance options for up to six months, with an additional six months if requested by the borrower, pursuant to the recently enacted CARES Act.

An FHA mortgagee letter provided information on the COVID-19 National Emergency Partial Claim to be used by servicers when the coronavirus forbearance period ends. FHA also instructed its mortgage servicers to delay submitting due and payable requests for reverse mortgages for six months and to extend any flexibility they may have relative to negative credit reporting actions.