Expiration of Temporary Guidance for the Endorsement of Mortgages Under Forbearance

Today, the Federal Housing Administration (FHA) is issuing this reminder regarding the pending expiration of the temporary guidance concerning endorsement processes for mortgages where a borrower was granted a forbearance related to the COVID-19 National Emergency prior to the loan being endorsed for FHA insurance.

This temporary guidance was first published on June 4, 2020, in Mortgagee Letter (ML) 2020-16, Endorsement of Mortgages under Forbearance for Borrowers Affected by the Presidentially- Declared COVID-19 National Emergency consistent with the Coronavirus Aid Relief, and Economic Security (CARES) Act.  It was last extended in ML-2020-45, dated December 17, 2020.

During the nine months of availability, fewer than three percent of FHA-approved mortgagees requested endorsement of such mortgages.  Because of its limited usage, FHA believes the expiration of this guidance will have a minimal impact to the industry.  Therefore, the temporary provisions will expire on March 31, 2021.

Please contact your Account Executive for any further questions.

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