The Federal Housing Administration (FHA) has issued a series of waivers of provisions in its Single Family Housing Policy Handbook 4000.1 that would normally require in-person contact between mortgage servicers and borrowers, including seniors with FHA-insured Home Equity Conversion (HECM) reverse mortgages. These waivers allow mortgage servicing activities to continue in a manner that allows for safe social distancing to help combat the coronavirus (COVID-19) pandemic. Specifically, the waivers build upon previous waivers and put in place the following provisions through December 31, 2021: Allowing alternative methods for servicers to conduct borrower interviews for FHA-insured forward and HECM mortgages when performing early default interventions for borrowers in danger of foreclosure; Waiving the $5,000 property charge payment arrearages cap on recalculated repayment plans, allowing servicers to help more HECM borrowers who are behind on their property charge payments; and Eliminating the requirement for servicers to obtain a signature on an occupancy certification from a HECM borrower.
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