The following information, published in Mortgagee Letter (ML) 2020-24 and extended in MLs 2020-40, 2020-46, 2021-07, and 2021-16 is effective immediately for open escrow accounts through September 30, 2021.
Yes, FHA is providing temporary flexibility regarding the requirements in the Single Family Housing Policy Handbook 4000.1 (II.A.8.a.xvii(B) – Extension Requests, and II.A.8.a.xx – Servicing) to allow Mortgagees to continue administering the 203(k) Rehabilitation Escrow Account, including the approval of extension requests and release of funds, for mortgages where the Borrower is in forbearance due to the impacts of COVID-19.
When reviewing an extension request, the Mortgagee is still required to obtain:
Yes, FHA is providing temporary flexibility regarding the requirements in the Single Family Housing Policy Handbook 4000.1 (II.A.8.a.xvii(B) – Extension Requests, and II.A.8.a.xx – Servicing) to allow Mortgagees to continue administering the 203(k) Rehabilitation Escrow Account, including the approval of extension requests and release of funds, for mortgages where the Borrower is in forbearance due to the impacts of COVID-19.
When reviewing an extension request, the Mortgagee is still required to obtain:
- An explanation for the delay from the Borrower, contractor, or 203(k) Consultant; and
- A new estimated completion date.
- Mortgagee Letters 2021-16, 2012-07, 2020-46, 2020-40 and 2020-24: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
- Handbook 4000.1: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh