HUD: Federal Housing Administration Adds Additional COVID-19 Forberance Relief Options

Actions today are a response to the continued impacts of the pandemic on individuals and families across the country.

The Federal Housing Administration (FHA) announced today new and extended COVID-19 relief options for borrowers recently or newly struggling to make their mortgage payments because of the pandemic and for senior homeowners with Home Equity Conversion Mortgages (HECMs) who need assistance to remain in their homes. These measures respond to the continued impacts of the pandemic and are part of FHA’s continuing evolution of its COVID-19 policies so that the right tools are in place to help borrowers.

Specifically, FHA made the following changes, effective today:

  • A new COVID-19 Forbearance or HECM Extension period for borrowers who may be newly affected by the pandemic: FHA is now providing up to six months of COVID-19 Forbearance for borrowers requesting an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between October 1, 2021, and the end of the COVID-19 National Emergency, and an additional six months if the COVID-19 Forbearance or HECM Extension is exhausted and expires before the end of the COVID-19 National Emergency.
  • An additional COVID-19 Forbearance or HECM Extension period for borrowers recently seeking assistance: FHA is now providing up to six months of additional forbearance for borrowers who requested or will request an initial COVID-19 Forbearance or HECM Extension from their mortgage servicer between July 1, 2021, and September 30, 2021, allowing these borrowers up to a maximum of 12 months of COVID-19 Forbearance or HECM Extension.

“Our top priority is to help as many individuals and families as possible to recover from the COVID-19 pandemic and keep their homes,” said Principal Deputy Assistant Secretary for Housing Lopa Kolluri. “For FHA, this means that we will continue to work through all of our channels – mortgage servicers, housing counselors, and our other federal partners – to ensure we get the positive outcomes struggling homeowners need.”

Important Information for Homeowners

FHA urges those who are behind on their mortgage payments or are having difficulty complying with the terms of their Home Equity Conversion Mortgage (HECM), and have not yet contacted their mortgage servicer, to do so immediately. By contacting their servicer, homeowners can obtain a mortgage payment COVID-19 forbearance or a HECM extension. FHA also urges homeowners to engage with their mortgage servicer when their mortgage servicer contacts them about the new COVID-19 Advance Loan Modification (ALM) or any other COVID-19 loss mitigation home retention options. Homeowners who are seeking more information on the options available to them should also consider contacting a HUD-approved housing counseling agency.

FHA Forbearance and Home Equity Conversion Mortgage Extensions Effective as of September 27, 2021

COVID-19 Forbearance Period, Based on Date of Initial COVID-19 Forbearance

Initial Forbearance DateInitial Forbearance PeriodAdditional Forbearance PeriodForbearance ExtensionsMaximum Forbearance Period
March 1, 2020 – June 30, 2020Up to 6 monthsUp to 6 monthsUp to 6 months
(in 3-month increments)
Up to 18 months
July 1, 2020 – Sept. 30, 2020Up to 6 monthsUp to 6 monthsUp to 3 monthsUp to 15 months
Oct. 1, 2020 – June 30, 2021Up to 6 monthsUp to 6 months0Up to 12 months
July 1, 2021 – Sept. 30, 2021Up to 6 monthsUp to 6 months0Up to 12 months
October 1, 2021 – the end of the COVID-19 National EmergencyUp to 6 monthsUp to 6 months (if the initial forbearance will be exhausted and expires during the COVID-19 National Emergency)  0Up to 12 months (if the Borrower is eligible for the additional COVID-19 Forbearance Period)

COVID-19 Extensions for HECMs

The following applies to all HECMs.

Initial Extension Start DateInitial Extension PeriodAdditional Extension PeriodAdditional ExtensionsMaximum Extension Period
March 1, 2020 – June 30, 2020Up to 6 monthsUp to 6 monthsUp to 6 months
(in 3-month increments)
Up to 18 months
July 1, 2020 – Sept. 30, 2020Up to 6 monthsUp to 6 monthsUp to 3 monthsUp to 15 months
Oct. 1, 2020 – June 30, 2021Up to 6 monthsUp to 6 months0Up to 12 months
July 1, 2021 – Sept. 30, 2021Up to 6 monthsUp to 6 months0Up to 12 months
October 1, 2021 – the end of the COVID-19 National EmergencyUp to 6 monthsUp to 6 months (if the initial COVID-19 Extension period will be exhausted and expires during the COVID-19 National Emergency)0Up to 12 months (if the Borrower or the HECM is eligible for the additional COVID-19 Extension period)

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