FHA Issues and Extends COVID-19 Related Waivers

FHA recently issued various waivers that build upon previous waivers and extend the effective date of certain provisions.

Among other things, the waivers allow alternative methods (phone interviews, video calling services, etc.) for servicers to conduct borrower interviews for FHA-insured forward and HECM mortgages when performing early default interventions for borrowers in danger of foreclosure. Note that the mortgagee must still meet documentation requirements related to borrower contact when using alternative methods of contact. In addition, FHA issued partial waivers to: (i) waive the $5,000 property charge payment arrearages cap on recalculated repayment plans; and (ii) eliminate the requirement for servicers to obtain a signature on an occupancy certification from a HECM borrower. Such waivers are effective through December 31, 2021.

For more information, see WBK’s prior article on the extension of foreclosure moratoriums and other COVID-19 related policies.