FHA Extends Deadline for Requesting COVID-19 Forbearance and HECM Extensions

FHA recently published Mortgagee Letter 2023-08 (ML), which establishes May 31, 2023, as the final date for borrowers to request a COVID-19 forbearance or a COVID-19 HECM extension. 

The COVID-19 forbearance and HECM extension options were set to expire at the end of the COVID-19 Presidentially Declared National Emergency. However, in anticipation of the National Emergency ending earlier than originally expected, FHA issued this ML to provide borrowers with additional time to request forbearance or a HECM extension, and to provide mortgagees with additional time to offer or process such requests.

The updated policies in the ML went into effective immediately and will be incorporated into a forthcoming update of the FHA Single Family Housing Policy Handbook 4000.1.