For any Owner-Occupant FHA Borrower who receives a COVID-19 Forbearance, the Mortgagee must evaluate the Borrower for the COVID-19 Standalone Partial Claim no later than the end of the COVID-19 Forbearance period(s).
Eligibility for the COVID-19 Standalone Partial Claim:
The Mortgagee must ensure that:
- the Mortgage was current or less than 30 Days past due as of March 1, 2020;
- the Borrower indicates they have the ability to resume making on-time Mortgage Payments; and
- the Property is owner-occupied.
Terms of the COVID-19 Standalone Partial Claim:
- the Borrower’s accumulated late charges, fees, and penalties are waived;
- the COVID-19 Standalone Partial Claim amount includes only arrearages, which consists of Principal, Interest, Taxes, and Insurance (PITI);
- the COVID-19 Standalone Partial Claim does not exceed the 30 percent maximum statutory value of all Partial Claims for an FHA-insured Mortgage, as listed in Statutory Maximum for Partial Claims (III.A.2.k.v(D)(2)(a)); and
- the Borrower receives only one permanent COVID-19 Home Retention Option.
Required Documentation for COVID-19 Standalone Partial Claim:
The Mortgagee must submit all required documentation for COVID-19 Standalone Partial Claims as listed under Delivery of Partial Claim Documents (III.A.2.k.v(J)(6)).
The Mortgagee is automatically granted a 90-Day extension to the six-month deadline for the recorded Mortgage.
If a Mortgagee experiences additional delays out of their control, including past the automatic 90-Day extension for the recorded Mortgage, that impact delivery of the Partial Claim documents, Mortgagees may file requests for an additional extension in accordance with Requests for Extensions of Time for Delivery of Partial Claim Documents (III.A.2.k.v(J)(7)).
For additional information, see:
- Mortgagee Letter 2020-06 available at: https://www.hud.gov/program_offices/administration/hudclips/letters/mortgagee
- Handbook 4000.1 III.A.3.d.iv(A) available at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh