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HUD Issues Mortgagee Letters Concerning COVID-19 Pandemic

Monday, April 13, 2020 - 10:30AM

The U.S. Department of Housing and Urban Development (HUD) issued two mortgagee letters, due to the COVID-19 pandemic, concerning property owners with Federal Housing Administration (FHA) and HUD loans. Mortgagee Letter 2020-09 provides the protocol to request mortgage forbearance for FHA loans provided under the Coronavirus Aid, Relief and Economic Security (CARES) Act. That authority is under effect from March 27 through the end of the year, unless the national emergency declaration is terminated before then. Mortgagee Letter 2020-11 provides debt service reserve requirements for HUD 223(f) loans in process due to the impact of COVID-19 on the real estate market. The requirements will remain in effect until HUD determines the real estate markets have stabilized.

For community development, affordable housing and renewable energy updates related to COVID-19, see Novogradac’s dedicated page.

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