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c. COVID-19 HECM Property Charge Repayment Plan (04/29/2024)
i. Eligibility
Mortgagees may provide a Borrower a COVID-19 HECM Property Charge Repayment Plan if the Borrower is delinquent on payment of Property Charges and has been impacted by COVID-19. Borrower attestation, written or verbal, that they have been impacted by COVID-19 is sufficient for documenting that a Borrower has been impacted by COVID-19. The Mortgagee must document the Borrower’s attestation in their Servicing File.
ii. Length of Repayment Plan
The maximum length of a COVID-19 HECM Property Charge Repayment Plan is 60 months. This 60-month time period is not reduced by any time that the Borrower utilized a standard HECM Repayment Plan.
iii. Calculating the Repayment Plan
The COVID-19 HECM Property Charge Repayment Plan is calculated using the requirements for a standard HECM Repayment Plan. The Borrower is eligible for a COVID-19 HECM Property Charge Repayment Plan even if they have been unsuccessful on a prior Repayment Plan, the total outstanding arrearage is greater than $5,000, or both. All other requirements with respect to HECM Property Charge Repayment Plans apply to a COVID-19 HECM Property Charge Repayment Plan
iv. COVID-19 HECM Property Charge Repayment Plans and the Homeowner
Assistance Fund
If the Borrower will not be able to repay the corporate advances for Property Charge defaults within the permissible time, the Mortgagee may offer a COVID-19 HECM Property Charge Repayment Plan if:
• the Borrower has submitted an application for Homeowner Assistance Funds
(HAF) as evidenced by an “A” or “I” code; and
• the actual HAF assistance awarded, or if no HAF assistance is awarded then up to the maximum amount available under the jurisdiction’s HAF program (provided HECM is part of the HAF program in that jurisdiction), combined with the
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III. SERVICING AND LOSS MITIGATION B. Title II Insured Housing Programs Reverse Mortgages
3. Programs and Products - COVID-19 HECM Property Charge Repayment Plan (04/29/2024)
Borrower’s ability to repay will result in full repayment of the outstanding corporate advances for Property Charge defaults.
v. Reporting
Mortgagees must submit a Property Charge Loss Mitigation Extension Request in HERMIT and designate the request “COVID-19 Repayment Plan.”
vi. Expiration of COVID-19 HECM Property Charge Repayment Plan
Mortgagees may initiate COVID-19 HECM Property Charge Repayment Plans no later than April 10, 2024, one year after the end of the COVID-19 National Emergency. The Property Charge default need not have occurred during the COVID-19 National Emergency.
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III. SERVICING AND LOSS MITIGATION C. Title I Insured Programs
1. Title I Property Improvement Loan Program