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Financial Services Law Insights and Observations

HUD re-extends procedures to address Section 232 mortgage insurance issues

Federal Issues Covid-19 HUD Mortgages Mortgage Insurance

Federal Issues

On December 28, the U.S. Department of Housing and Urban Development issued Mortgagee Letter 2020-50, which extends interim procedures regarding site access issues related to Section 232 mortgage insurance applications during the Covid-19 pandemic (previously covered here, here and here). The guidance provides temporary modifications pertaining to third-party site inspections conducted for Section 232 FHA-insured healthcare facilities. The modifications are effective through March 31, 2021. The letter also provides guidance on other aspects relating to Section 232 properties, including regarding lender underwriter site visits, appraisals, and inspections on new construction, among other things.

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