FHA issued Mortgagee Letter 2023-03, correcting and republishing expansion of COVID-19 recovery loss mitigation options Mortgagee Letter 2023-02. Per this Mortgagee Letter, FHA made 3 corrections or clarifications to Mortgagee Letter 2023-02, and restated the remaining polices in Mortgagee Letter 2023-02 as originally published. Specifically, FHA:
- Corrected the date when mortgagees may submit COVID-19 loss mitigation incentive claims (Mortgagees remain eligible for incentive payments for COVID-19 loss mitigation options executed on or after January 26, 2023);
- Replaced “as of [publication Date of the ML]” with “as of January 30, 2023” in Section III.A.2.o.iii(B)(3) (Additional Evaluation for COVID-19 Recovery Options); and
- Added language to Section III.A.2.o.iii(C)(2)(c) (COVID-19 Recovery Modification, Target Payment Not Achieved), Step 7, to clarify the offer of a COVID-19 recovery standalone partial claim is subject to the claim’s availability.
The provisions of the Mortgagee Letter must be implemented no later than April 30, 2023 in all cases where the mortgagee has not sent documents to the borrower to complete any home retention loss mitigation option (servicers may, however, implement the changes as of January 30, 2023). The COVID-19 Recovery Options may be offered through October 30, 2024, and must be completed no later than February 27, 2025.
Click to view the FHA Info #2023-07: https://www.tenaco.com/wp-content/uploads/2023/02/FHA-Info-2023-07-02-13-23.pdf
Click to view the FHA Mortgagee Letter 2023-03: https://www.tenaco.com/wp-content/uploads/2023/02/FHA-Mortgagee-Letter-2023-03-02-13-23.pdf
