FHA issued Mortgagee Letter 2022-07, adding a 40-year loan modification with partial claim as a COVID-19 Recovery Loss Mitigation Option (COVID-19 Recovery Option). Per the Mortgagee Letter, the new loan modification option is designed to help homeowners reach the targeted 25% reduction on the monthly principal and interest portion on the homeowner’s mortgage payment when other COVID-19 Recovery Options are unable to do so. FHA also provided an exemption to the 40-year loan modification option for servicers of mortgages funded in connection with mortgage revenue bonds who cannot extend the term of a mortgage beyond the original 30 years or cannot modify the interest rate. The updates must be implemented by July 17, 2022 (servicers may, however, implement the updates immediately).
Click to view the FHA Mortgagee Letter 2022-07: https://www.tenaco.com/wp-content/uploads/2022/04/FHA-Mortgagee-Letter-2022-07-04-18-22.pdf
