COVID-19: For HECM Loans that are Due and Payable, must servicers extend deadlines relating to foreclosure and claim submission during the COVID-19 National Emergency?

Eligible Borrowers may request and Mortgage servicers must approve the initial COVID-19 HECM Extension Period no later than June 30, 2021.

For loans that have become automatically due and payable, entered into a deferral period (including deadlines necessary for loans to enter a deferral period), or became due and payable with HUD approval, the Borrower may request or the Mortgagee may also take an automatic extension for any deadline relating to foreclosure and claim submission for a period of up to 6 months. If needed, an additional period of up to 6 months may be approved by HUD.

For HECMs that entered an initial extension period on or before June 30, 2020, either the Borrower or Mortgagee may take two additional three month extension periods. If the Borrower requests the additional three month extension periods, the Mortgagee must approve them.

The Borrower must request each three month extension individually.   Neither of the two additional three-month extension periods may extend beyond December 31, 2021.

No extension period may extend beyond June 30, 2022.

The term of either the initial or any extended extension period may be shortened at the Borrower’s request. The Mortgagee must waive all Late Charges, fees, and penalties, if any, as long as the HECM is in an extension period.

Mortgagees must notify HUD of any additional extensions by submitting an extension request into HERMIT.

For additional information related to the COVID-19 HECM Due and Payable Extension Period see Mortgagee Letter 2021-05 available at:

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-05533