FHA added a new COVID-19 Home Equity Conversion Mortgage (HECM) property charge repayment plan option to assist senior homeowners who are behind on property charge payments due to COVID-19. Per the Mortgagee Letter, the COVID-19 HECM property charge repayment plan allows servicers to offer eligible homeowners up to 5 years (60 months) to repay property charges advanced by the servicer. The COVID-19 HECM property charge repayment plan option policies include the following:
- The COVID-19 HEMC repayment plan is available to borrowers who have applied for Homeowner Assistance Fund (HAF) assistance, if the HAF funds combined with the borrower’s ability to repay will satisfy the servicer’s advances for the delinquent property charges;
- the COVID-19 HECM repayment plan is allowed regardless of whether the borrower has been unsuccessful on a prior repayment plan and whether the borrower owes more than $5,000 in property charge advances; and
- The borrower is only required to provide a verbal attestation that the borrower has been impacted by COVID-19.
The Mortgagee Letter is effective December 15, 2022.
Click to view the FHA Info #2022-105: https://www.tenaco.com/wp-content/uploads/2022/12/FHA-Info-2022-105-12-15-22.pdf
Click to view the FHA Mortgagee Letter 2022-23: https://www.tenaco.com/wp-content/uploads/2022/12/FHA-Mortgagee-Letter-2022-23-12-15-22.pdf
