HUD Articles
HUD and Coronavirus Guidelines
March 08, 2021
The FHA and HUD have issued guidelines for mortgage loan closing procedures that may be affected by coronavirus lockdown measures, quarantine, and other issues related to the COVID-19 pandemic.
Many home buyers were caught by surprise by coronavirus issues and there are many home loans that are affected.
The Department of Housing and Urban Development issued initial policies in March, 2020, but updated them in mid-April to include provisions in several areas designed to help facilitate FHA home loans during the outbreak.
FHA Loan Rules On Title insurance
The FHA and HUD issued guidance on loan servicing issues designed to address situations in counties where recording offices are not operational during the national emergency. The FHA/HUD official site answers the following question related to such scenarios:
“Will FHA accept title policies with gap insurance?”
The HUD official site reminds readers that FHA loan rules do not require title insurance.
“However, the mortgagee must ensure that all objections to title have been cleared and any discrepancies have been resolved, to ensure that the FHA-insured mortgage is in first lien position” according to the updated COVID-19 instructions to FHA lenders.
“FHA does not object to mortgagees obtaining ga
