FHA Announces Temporary Endorsement Processes for Mortgages in Forbearance Due to COVID-19

FHA issued Mortgagee Letter 2020-16 (Letter), announcing temporary endorsement processes for mortgages placed in forbearance due to COVID-19. Mortgages that have been placed in forbearance prior to endorsement are generally ineligible for endorsement. Per the Letter, HUD will provide lenders the ability to endorse mortgages where the borrower has requested or has been granted a forbearance post-closing due to COVID-19. Eligibility is conditioned upon the lender’s execution of a two-year partial indemnification agreement with FHA. The temporary endorsement processes for mortgages placed in forbearance due to COVID-19 are effective for endorsements submitted on or after June 15, 2020.  Lenders may utilize the temporary endorsement processes through November 30, 2020.

Click here to view the HUD Mortgagee Letter 2020-16