The Federal Housing Administration (FHA) today called on all approved mortgagees and lenders to be sensitive to the financial hardships experienced by borrowers as a result of the shutdown, including those borrowers subject to furlough, layoff, or a reduction in income related to the shutdown. Read FHA Commissioner Brian Montgomery’s letter to lenders and approved mortgagees.
FHA approved mortgagees and lenders are reminded of their ongoing obligation to offer special forbearance to borrowers experiencing loss of income.
FHA expects all approved mortgagees and lenders to make every effort to communicate with and assist affected borrowers to the greatest extent possible by:
- extending special forbearance plans to borrowers impacted by the shutdown, and
- fully evaluating borrowers for available loss mitigation options to avoid foreclosure whenever possible.
“In accordance with longstanding policy, FHA expects mortgagees to assist borrowers experiencing a loss of income,” said FHA Commissioner Brian Montgomery in a letter to FHA-approved lenders and mortgagees.
FHA is also strongly encouraging all approved mortgagees and lenders to waive late fees for affected borrowers and to suspend credit reporting on borrowers nationwide who have been affected by the shutdown.