Temporary Guidance for the Endorsement for FHA Insurance of Mortgages Under COVID-19 Forbearance Expires

FHA recently issued a reminder of the expiration of HUD’s temporary guidance for the endorsement of mortgages under CARES Act forbearance, which expired effective March 31, 2021.  The temporary guidance, which had originally been effective as of June 15, 2020, generally had permitted mortgagees to submit forward mortgage loans (except for non FHA-to-FHA cash out refinances) for endorsement for FHA insurance where the loans had gone into COVID-19 related forbearance pursuant to the CARES Act.  WBK covered the issuance of the temporary guidance here, and a previous extension of the guidance here.  FHA noted that it believes the expiration of the guidance will have a minimal impact on the industry, due to its limited use during the nine months it was in effect.