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The original item was published from 3/6/2021 3:44:07 PM to 7/1/2021 12:00:04 AM.

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Press Release

Posted on: March 6, 2021

[ARCHIVED] Mortgage Foreclosure and Eviction Moratoriums extended by FHA

On Feb. 16, 2021, the FHA published Mortgagee Letter 2021-05, which outlines multiple COVID-19 related policy extensions and expansions designed to make it easier for mortgagees to provide FHA-insured homeowners with the assistance needed to retain their homes during these challenging times.

The updated guidance is effective immediately and applies to all FHA Title II Single Family programs. The document: 

  • Extends the foreclosure and eviction moratoriums through June 30 and provides a
    180-day extension to the deadlines for the first legal action and the reasonable diligence time frame from the date of the moratorium expiration.
  • Extends the dates to request an initial COVID-19 Forbearance or a COVID-19 Home Equity Conversion Mortgage (HECM) extension period through June 30.
  • Adds two COVID-19 forbearance and COVID-19 HECM extension periods of up to three months each for borrowers who requested their initial COVID-19 forbearance or COVID-19 HECM extension period on or before June 30, 2020, and are coming to the end of their 12-month period.
  • Expands eligibility for the COVID-19 loss mitigation options for certain borrowers regardless of whether they received a COVID-19 forbearance.
  • Eliminates the restriction on the number of permanent COVID-19 home retention options a borrower can receive.

For more information see Mortgagee Letter 2021-05 and the associated Press Release.


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Posted on: June 29, 2020