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HUD Mortgagee Letter 2021-05

Published on February 16, 2021
HUD Mortgagee Letter 2021-05

On February 16, HUD published, with immediate effect, Mortgagee Letter 2021-05. ML 2021-05 extends the foreclosure and eviction moratoriums for FHA-insured mortgages until June 30, 2021, in addition to the following single-family policy changes: 

  • Extends the foreclosure and eviction moratorium to June 30, 2021, and the deadline for the first legal action and the Reasonable Diligence
    Time Frame to 180 days.
  • Extends the COVID-19 forbearance start date and home equity conversion mortgage (HECM) extension period to June 30, 2021.
  • Provides up to two additional three-month COVID-19 forbearance or HECM extension periods for certain borrowers.
  • Allows additional borrowers, regardless of delinquency status or participation on a COVID-19 forbearance, to utilize FHA’s COVID-19
    loss mitigation options.
  • Removes the restriction on borrowers receiving more than one COVID-19 home retention option.

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