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Comment Period: Expansion of the COVID-19 Recovery Loss Mitigation Options

Subject: Expansion of the COVID-19 Recovery Loss Mitigation Options

Purpose: This Mortgagee Letter (ML) extends the COVID-19 Recovery Loss Mitigation Options (COVID-19 Recovery Options) and expands the options to include additional eligible Borrowers, increase the COVID-19 Recovery Partial Claims, and add incentive payments to Mortgagees.

Effective Date: The provisions of this ML may be implemented immediately, but must be implemented no later than April 30, 2023, where the Mortgagee has not sent documents to the Borrower to complete any Home Retention Option. The COVID-19 Recovery Options may be offered through, but no later than, October 30, 2024, and completed no later than February 27, 2025. FHA is working to update and streamline its standard Loss Mitigation Options. FHA will provide Mortgagees with advance notice, through ML, of any early termination of the provisions of this ML. COVID-19 Loss Mitigation Options are eligible for incentive claims where the execution date is on or after March 1, 2023.

Public Feedback: HUD welcomes feedback from interested parties for a period of 30 calendar days from the date of issuance. To provide feedback on this policy document, please send feedback to the FHA Resource Center at [email protected]. HUD will consider the feedback in determining the need for future updates.

https://www.hud.gov/sites/dfiles/OCHCO/documents/2023-02hsgml.pdf?utm_medium=email&utm_source=govdelivery

  • March 1, 2023
  • Time: All Day
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