COVID-19: Will FHA adjust lender Compare Ratios displayed in Neighborhood Watch to account for the impact of the COVID-19 pandemic?

No. FHA is unable to remove any loans in default or claim status from Neighborhood Watch Compare Ratio calculations, including loans in forbearance for borrowers affected by the COVID-19 pandemic. FHA uses Compare Ratios to determine whether termination or suspension of certain Mortgagee authorities is warranted under the Credit Watch Termination and Lender Insurance (LI) Program monitoring processes. FHA will consider the impact of the COVID-19 pandemic when a lender’s Compare Ratio is above the designated threshold for either process.
For additional information see:
Mortgagees can access Neighborhood Watch at:   
Public access to Neighborhood Watch is available at:
Information on Neighborhood Watch can be accessed using the Neighborhood Watch link in the Lender Performance section at:

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 COVID-19 pandemic.  Related information for FHA mortgagees, borrowers and other interested parties is available at:  and on the  website.
HQ Policy Determination – COVID-19 guidance

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-05529