On February 16, 2021, HUD published Mortgagee Letter 2021-05. This mortgagee letter, which is effective immediately, provides for a number of COVID-19 related extensions and relief options. These include, among other things, the following:
- The foreclosure and eviction moratorium has been extended to June 30, 2021; additionally, HUD has extended the deadline for the first legal action, and the Reasonable Diligence Time Frame, to 180 days.
- HUD requires mortgagees to approve the initial COVID-19 Forbearance or HECM Extension Period no later than June 30, 2021.
- Eligible borrowers may now receive more than one COVID-19 Home Retention Option.
- HUD has temporarily expanded the eligibility of COVID-19 Loss Mitigation Options to borrowers who did not previously participate in forbearance related to COVID-19, but who are 90 or more days delinquent and affirm that they have been negatively impacted by COVID-19.
- Borrowers who requested initial COVID-19 Forbearance on or before June 30, 2020 may now request up to 2 additional 3-month COVID-19 Forbearance periods, once the initial 12-month period has expired. Each such extension must be requested individually. Neither of these two additional extension periods may extend beyond December 31, 2021, and no COVID-19 Forbearance may extend beyond June 30, 2022.