FHA Single Family Housing Policy Handbook 4000.1, III. SERVICING AND LOSS MITIGATION > B. Title II Insured Housing Programs Reverse Mortgages > 3. Programs and Products - COVID-19 HECM Property Charge Repayment Plan (04/29/2024) — c. COVID-19 HECM Property Charge Repayment Plan

FHA Single Family Housing Policy Handbook 4000.1, Part III — c. COVID-19 HECM Property Charge Repayment Plan (04/29/2024)

Effective 2024-04-29 · publisher's stamp for this provision

c. COVID-19 HECM Property Charge Repayment Plan (04/29/2024) i. Eligibility Mortgagees may provide a Borrower a COVID-19 HECM Property Charge Repayment Plan if the Borrower is delinquent on payment of Property Charges and has been impacted by COVID-19. Borrower attestation, written or verbal, that they have been impacted by COVID-19 is sufficient for documenting that a Borrower has been impacted by COVID-19. The Mortgagee must document the Borrower’s attestation in their Servicing File. ii. Length of Repayment Plan The maximum length of a COVID-19 HECM Property Charge Repayment Plan is 60 months. This 60-month time period is not reduced by any time that the Borrower utilized a standard HECM Repayment Plan. iii. Calculating the Repayment Plan The COVID-19 HECM Property Charge Repayment Plan is calculated using the requirements for a standard HECM Repayment Plan. The Borrower is eligible for a COVID-19 HECM Property Charge Repayment Plan even if they have been unsuccessful on a prior Repayment Plan, the total outstanding arrearage is greater than $5,000, or both. All other requirements with respect to HECM Property Charge Repayment Plans apply to a COVID-19 HECM Property Charge Repayment Plan iv. COVID-19 HECM Property Charge Repayment Plans and the Homeowner Assistance Fund If the Borrower will not be able to repay the corporate advances for Property Charge defaults within the permissible time, the Mortgagee may offer a COVID-19 HECM Property Charge Repayment Plan if: • the Borrower has submitted an application for Homeowner Assistance Funds (HAF) as evidenced by an “A” or “I” code; and • the actual HAF assistance awarded, or if no HAF assistance is awarded then up to the maximum amount available under the jurisdiction’s HAF program (provided HECM is part of the HAF program in that jurisdiction), combined with the Borrower’s ability to repay will result in full repayment of the outstanding corporate advances for Property Charge defaults. v. Reporting Mortgagees must submit a Property Charge Loss Mitigation Extension Request in HERMIT and designate the request “COVID-19 Repayment Plan.” vi. Expiration of COVID-19 HECM Property Charge Repayment Plan Mortgagees may initiate COVID-19 HECM Property Charge Repayment Plans no later than April 10, 2024, one year after the end of the COVID-19 National Emergency. The Property Charge default need not have occurred during the COVID-19 National Emergency. C. TITLE I INSURED PROGRAMS This section provides the standards and procedures applicable to the servicing of Loans under the Property Improvement and Manufactured Home Loan programs insured under Title I of the National Housing Act. The Lender must fully comply with all of the following standards and procedures when servicing a Loan insured by the Federal Housing Administration (FHA). Financial Operations Center The Financial Operations Center (FOC) provides support for the FHA Title I Property Improvement and Manufactured Home Loan programs. The contact information for the FOC is: U.S. Department of Housing and Urban Development Financial Operations Center 52 Corporate Circle Albany, New York 12203 1-800-669-5152, extension 2832 Title_One_Help@hud.gov 1. Title I Property Improvement Loan Program Title I FHA-approved Lenders may: • service the Loans they hold; • service Title I Loans on behalf of or at the direction of another FHA-approved Lender; or • utilize services of a servicing agent. It is not necessary for an agent of the Lender to be approved by FHA to service Title I Loans. However, all Title I Loans must be serviced in accordance with HUD requirements. A Title I Lender holding Title I Loans will remain responsible to HUD for proper collection efforts, even though an agent of the Lender may perform actual loan servicing and collection.

Source: FHA Single Family Housing Policy Handbook 4000.1, Update 18 (issued 2026-08-12) · source URL · snapshot e1bca3432cf19e09