WBK Industry News - Federal Regulatory Developments

HUD Extends Date for Approving Initial COVID-19 Forbearance or COVID-19 HECM Extension

In Mortgagee Letter (ML) 2020-34, HUD has extended the date by which Mortgagees must approve the initial COVID-19 Forbearance or HECM Extension, as provided for in ML 2020-06, to December 31, 2020.  This extension to December 31, 2020, will also apply for HECMs related to:

  • Mortgagee Letter 2015-10 (Home Equity Conversion Mortgage (HECM) Due and Payable Policies);
  • Mortgagee Letter 2015-11 (Loss Mitigation Guidance for Home Equity Conversion Mortgages (HECMs) in Default due to Unpaid Property Charges); and
  • 24 C.F.R. § 206.125 (Acquisition and Sale of Properties), and 24 C.F.R. § 206.205 (Property Charges).