FHA Republishes Expansion of COVID-19 Recovery Loss Mitigation Options Mortgagee Letter 

The Federal Housing Administration (FHA) published Mortgagee Letter (ML) 2023-03, Corrected and Republished: Expansion of the COVID-19 Recovery Loss Mitigation Options. 

This ML makes three corrections or clarifications in Mortgagee Letter 2023-02 and restates the policies in ML 2023-02, as originally published on January 30, 2023. Specifically, the ML: 

• Corrects the date when mortgagees may submit COVID-19 Loss Mitigation incentive claims. Mortgagees remain eligible for incentive payments for COVID-19 Loss Mitigation Options executed on or after January 26, 2023. 
• Corrects an error in Section III.A.2.o.iii(B)(3), Additional Evaluation for COVID-19 Recovery Options, by replacing bracketed language with the appropriate date, January 30, 2023. 
• Adds language to COVID-19 Recovery Modification, Target Payment Not Achieved, Handbook 4000.1, Section III.A.2.o.iii(C)(2)(c), Step 7, to clarify the offer of a COVID-19 Recovery Standalone Partial Claim is subject to its availability. 

Updates in the ML will be incorporated in a future version of the Single Family Housing Policy Handbook 4000.1.