The Federal Housing Administration (FHA) extended COVID-19 forbearance and home equity conversion mortgage (HECM) extension policies through May 31. The extension was issued in anticipation of the Biden-Harris administration ending the public health emergency declaration that defined the pandemic.
The agency stated the request for FHA COVID-19 forbearance and HECM extension options were originally meant to end at the same time as the COVID-19 national emergency. In February, President Joe Biden announced his intention to terminate the national emergency on May 11.
“As the national emergency may end earlier than originally expected, FHA is choosing to extend its COVID-19-related forbearance and HECM extension policies beyond the end of the national emergency,” FHA stated. “This gives borrowers with FHA-insured mortgages who need assistance additional time to request forbearance or an HECM extension. It also provides mortgagees with additional time to offer and process these requests.”
The FHA also stated this extension did not impact the changes made to the U.S. Department of Housing and Urban Development’s loss mitigation program announced in February.