COVID-19: New Guidance from the GSEs and Federal Agencies Impacting Mortgage Loans and Program Requirements

In response to the national emergency and global pandemic caused by the COVID-19 outbreak, federal housing finance authorities have issued temporary borrower relief measures. The Federal Housing Administration (“FHA”) of the US Department of Housing and Urban Development (“HUD” or “Department”) and the Federal Housing Finance Agency (“FHFA”), including Fannie Mae and Freddie Mac (collectively referred to as the “GSEs”), at FHFA’s direction, each announced, on March 18, 2020, temporary relief measures that require mortgage loan servicers to offer relief to borrowers who suffer hardship as a result of COVID-19. The Department of Veterans Affairs (“VA”) also issued announcements encouraging servicers and holders of VA-guaranteed loans to take similar measures to provide relief. Soon-to-be-passed federal legislation will directly impact these measures.

In addition, earlier on March 14, 2020, HUD issued a temporary waiver of its face-to-face interview requirement for servicers of delinquent FHA loans. HUD also extended the deadline to complete the annual recertification process for FHA-approved mortgagees with fiscal years ending on December 31, 2019, and issued Frequently Asked Questions (“FAQs”) to provide guidance to FHA participants on other important topics related to the impacts of COVID-19.

Please join Mayer Brown partners Holly Bunting and Krista Cooley for a special edition COVID-19 update teleconference during which they will discuss these pressing issues.