Temporary Waiver of Servicing Policy Regarding In-Person Borrower Contact

The United States Department of Housing and Urban Development (HUD) has issued a waiver of its requirement that mortgagees have face-to-face contact with borrowers to determine the borrower’s circumstances and appropriate repayment plan because of COVID-19.  This waiver is limited to Single Family Mortgage Insurance.

The mortgagee must establish contact with the borrower using alternative methods including telephone, email or video conference to inform the borrower that HUD will make information available about the status and payment history of the borrower’s loan available to local credit bureaus and prospective lenders, to inform the borrower of other available assistance, and to inform the borrower of names and addresses of HUD officials to contact.

The mortgagee must documents their contact with the borrower.  The waiver does not apply to the face-to-face requirement for the Section 248 insurance program.  The waiver is limited to a 12-month period from the date of issuance.  (FHA Letter 20-20, March 13, 2020.)