COVID-19: Mortgagee Letter 2020-06 includes a COVID-19 Forbearance. How is this forbearance different than the Informal and Formal Forbearance from HUD’s Priority Waterfall?

The COVID-19 National Emergency Forbearance is not a written agreement; it must be approved by the Mortgagee, upon borrower request, for up to six months and extended up to an additional six months, if needed, upon borrower request.  The combined maximum COVID-19 Forbearance period must not exceed 12 months.  The COVID-19 Forbearance may only be offered under the guidance of this COVID-19 National Emergency.

Mortgagees may approve eligible Borrowers requests for the initial COVID-19 Forbearance no later than February 28, 2021 
For additional information, see:

FHA continues to revise its FHA Single Family COVID-19 information as needed to keep stakeholders updated with the latest information about FHA’s response to the Presidentially-declared COVID-19 national emergency. Related information for FHA Mortgagees, borrowers and other interested parties is available at and on the website

All policy information contained in this knowledge base article is based upon the referenced HUD policy document. Any lending or insuring decisions should adhere to the specific information contained in that underlying policy document.

Topic Number: KA-05467