Servicers who fail to meet processing timeframes have to forfeit interest for the entire time it takes to resolve a loan in default.

The extension applies to loans that were current or less than 30 days past due as of March 1 and go into default before Nov. 30.

Noting that competitive pricing can be impacted during disasters such as the one created by the coronavirus, HUD’s internal watchdog has listed red flags officials should look for when reviewing bids.

One option places past-due mortgage amounts in separate junior liens of up to 30% of the outstanding. The lien is repayable when the mortgage ends, which is usually when a borrower refinances or sells their home.

If HUD implements its proposed final disparate impact rule, exceeding its authority, it could be a challenged under the Administrative Procedure Act, according to an industry attorney.

The internal watchdog has raised concerns about HUD’s inability to identify and track personally identifiable information on one billion records.

For borrowers who qualify for an Interest Rate Reduction Refinance Loan, a number of approval requirements have been temporarily waived.

Borrowers in default or facing foreclosure should look out for fraudulent loan-modification schemes, the HUD Inspector General warned.

HUD Secretary Ben Carson is sticking to his stance that DACA recipients are not barred from FHA loans.

Industry wants FHA to guarantee loans but not charge lenders for loans in progress where COVID-19 forbearance has been invoked.