Supervisors Symposium

FHA Mortgagee Letter 2021-18: Extension of First Legal Deadline Date through ~1/27/2022

 What Impact will this have on loss mitigation efforts and foreclosure filings?

CFPB’s 2021 Mortgage Servicing COVID-19 – Effective 8/31/2021 through 12/31/2021 1. Effective 8/31/2021 covering all residential mortgages secured by principal residences, excluding reverse mortgage and generally loans serviced by small servicers. 2. Prohibits foreclosure referral of 120+ delinquent loans between 8/31/2021 and 12/31/2021 unless specific procedural safeguards are met to give borrowers adequate opportunity for loss mitigation. 3. Specific exceptions apply: foreclosure referral occurs on or after 1/1/2022, borrower was 120+ delinquent prior to 3/1/2020, statute of limitations will expire before 1/1/2022.

https://files.consumerfinance.gov/f/documents/cfpb_covid ‐ mortgage ‐ servicing_final ‐ rule_2021 ‐ 06.pdf