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HUD No. 20-214
HUD Public Affairs
(202) 708-0685
FOR RELEASE
Monday
December 21, 2020

FHA EXTENDS OPTIONS FOR SINGLE FAMILY BORROWERS FINANCIALLY IMPACTED BY COVID-19
Extensions ensure borrowers can continue to seek assistance and avoid eviction and foreclosure while maintaining temporary policy flexibilities for lenders and servicers


WASHINGTON - Today, the Federal Housing Administration (FHA) announced it is extending the foreclosure and eviction moratorium for single family FHA-insured mortgages for an additional two months, through February 28, 2021. The FHA is also extending through February 28, 2021, the deadline for single family borrowers with FHA-insured mortgages to request an initial COVID-19 forbearance from their mortgage servicer to defer or reduce their mortgage payments for up to six months, which can be extended for an additional six months. In addition, today FHA also extended multiple temporary provisions for lenders and servicers to allow them to continue doing FHA business despite social distancing considerations.

This is the fourth extension of FHA’s eviction and foreclosure moratorium. The moratorium prohibits servicers from initiating or proceeding with foreclosure and foreclosure-related eviction actions for FHA-insured single family forward and reverse mortgages, except for those secured by legally vacant and abandoned properties. Further, FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a borrower requests this assistance, and up to an additional six months of COVID-19 forbearance for borrowers who request an extension of the initial forbearance. Borrowers needing assistance must engage with their servicer to obtain an initial COVID-19 forbearance on or before February 28, 2021.

“Throughout this global pandemic, the Trump Administration has taken unprecedented steps to assist FHA-insured borrowers who are impacted by COVID-19,” said HUD Secretary Ben Carson. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability.” “COVID-19 has created hardships for millions of Americans. FHA will continue to assist borrowers who are struggling to regain their financial footing as a result of this pandemic. American homeowners should not be forced from their homes while they are seeking help,” said Assistant Secretary for Housing and Federal Housing Commissioner Dana Wade.

To assist lenders and servicers in continuing to supply FHA-insured affordable mortgage financing despite the considerations for social distancing, today FHA also extended:

  • The timeframe for providing an insurance endorsement on single family mortgages in forbearance through March 31, 2021.
  • Temporary re-verification of employment guidance and exterior-only appraisal inspection option through February 28, 2021.
  • Temporary provisions for verification of self-employment, rental income, and 203(k) Rehabilitation Mortgage escrow accounts through February 28, 2021.

FHA encourages borrowers with FHA-insured mortgages who can make their mortgage payments to continue to do so. Those who are struggling financially because of COVID-19 should engage with their mortgage servicer -the entity to which they make their monthly mortgage payments. FHA provides post-COVID-19 forbearance loss mitigation options to assist borrowers with bringing their mortgage current. FHA does not require a lump sum payment at the end of any COVID-19 forbearance period.

Borrowers with FHA-insured mortgages seeking additional information on available options should visit FHA’s COVID-19 Resources for Homeowners web page on FHA.gov. Other homeowners are encouraged to visit the Consumer Financial Protection Bureau’s Coronavirus Mortgage and Housing Assistance web pages.

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