FHA extends Covid-19 flexibilities

Federal Issues FHA Covid-19 Mortgages Servicing Mortgages

Recently, FHA announced the extension of several Covid-19-related flexibilities for single-family lenders and servicers. Specifically, Mortgagee Letter 2021-16 will “allow industry partners additional opportunity to utilize flexible guidance related to” self-employment and rental income verification for case numbers assigned on or before September 30. Both extensions are applicable to Single Family Title II forward and Home Equity Conversion Mortgages. FHA is also extending temporary flexibilities for “the administration of 203(k) Rehabilitation Escrow guidance for borrowers in forbearance” for open escrow accounts through September 30. Additionally, Mortgagee Letter 2021-17 updates Single Family Quality Control (QC) requirements for appraisal field reviews and evaluation of property and appraisal documentation. FHA notes that the updated guidance applies to mortgages selected for Property and Appraisal QC review on or after July 1.