The U.S. Department of Housing and Urban Development (HUD) issued a temporary and partial waiver of regulation on December 19, 2022, applying specifically to 24 CFR § 203.604, which deals with servicing responsibilities and contact with the mortgagor.
The waiver extends a temporary waiver already in place due to the COVID-19 pandemic, and was prompted by continued COVID-19 concerns, increased seasonal flu infections, a surging RSV season, and employee and resource shortages affecting mortgage servicing.
Mortgage lenders are still required to establish contact with borrowers, but they may now do so using alternative methods such as telephone interviews, email communications, or video conferences. These meetings allow the lender to assess the borrower's circumstances and create a repayment plan, and must inform the borrower of credit-reporting practices, available assistance, and relevant HUD contacts.
The documentation requirement still stands, and the waiver now also requires that the method of communication be documented. HUD's extended waiver does not apply to the Section 248 insurance program requirements, which still require face-to-face contact.
Back to all insights
