Mortgage Servicing

CARES Act Consumer Right to Request Forbearance

Montana Housing homeowners with a federally backed mortgage loan experiencing financial hardship due directly or indirectly to the COVID-19 pandemic may request forbearance on their federally backed mortgage loan, regardless of delinquency status.

On March 27, 2020, Congress passed, and President Trump signed into law, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) which provides for the right to request forbearance.

Please review the  Montana Housing COVID-19 Response letter for details.

Moratorium Extensions:

FHA’s Foreclosure and Eviction Moratorium Extended Through July 31, 2021
The Federal Housing Administration (FHA) published Mortgagee Letter (ML 2021-15). This ML announces the extension of the foreclosure and eviction moratorium through July 31, 2021. This guidance is applicable to all FHA Title II single family forward mortgage and Home Equity Conversion Mortgage (reverse) programs, except for those secured by vacant and/or abandoned properties.

RD’s Foreclosure and Eviction Moratorium Extended Through July 31, 2021
The Foreclosure and Eviction Moratorium announced by USDA, Single Family Housing Guaranteed Loan Program (SFHGLP) on March 19, 2020 is extended until July 31, 2021. The moratorium does not apply in cases where the servicer has documented the property is vacant or abandoned.

VA’s Foreclosure and Eviction Moratorium Extended Through July 31, 2021
Department of Veterans Affairs (VA) guaranteed loans are subject to a moratorium Circular 26-21-10 on foreclosure through July 31, 2021. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process..

Forbearance Requirements:

To Request a Forbearance
Montana Housing borrowers must submit a completed Montana Housing COVID19 Forbearance Acknowledgment form. Upon receipt of the completed form, Montana Housing Loan Servicing Specialist will contact the borrower to discuss next steps. It is critical that borrowers keep in contact with us during this time so we can identify the best option available to each borrower, based on individual circumstances.

FHA Timeframe to Request the Initial Forbearance Extended
Pursuant to Mortgagee Letter (ML 2021-15), FHA is allowing mortgagees to approve the initial 180 day COVID-19 Forbearance and initial COVID-19 HECM Extension through September 30, 2021. Additionally, FHA has provided a schedule for extensions based on initial forbearance start dates within ML 2021-15.

USDA-RD Timeframe to Request the Initial Forbearance Extended
USDA-RD has extended the timeframe for borrowers to request the initial forbearance per recent guidance. USDA borrowers that have not taken advantage of forbearance to date may request a mortgage payment forbearance prior to September 30, 2021. The initial forbearance period may be up to 180 days and the borrower may request an extension of up to an additional 180 days. Borrowers who received an initial CARES Act forbearance before June 30, 2020, may be granted up to two additional three-month payment forbearances. The borrower must request each extension individually.

VA Timeframe to Request the Initial Forbearance Extended
Department of Veterans Affairs (VA) guaranteed loans has extended the timeframe to request the initial forbearance per Circular 26-21-10 through September 30, 2021. For Veterans who requested their initial COVID-19 forbearance on or before June 30, 2020, the Veteran may request, up to two additional three-month COVID-19 forbearance periods, after twelve months of COVID-19 forbearance. The Veteran must request each three-month extension individually. Neither of the two additional three month COVID-19 forbearance periods may extend beyond December 31, 2021.

Montana Housing must follow the guidelines set forth by the insurer/guarantor (FHA, VA, RD, HUD-184) of your loan. These guidelines allow Montana Housing to offer loan modifications, payment plans, and forbearance but do not allow us to defer payments. Montana Housing, as a loan servicer of federally insured mortgages, applauds the passage of the federal CARES Act to provide relief for our homeowners.
Consumer Finance Protection Agency Guide to coronavirus mortgage relief options  

CARES Act Forbearance Fact Sheet for Borrowers with FHA, VA, or USDA Loans

Federal Housing Administration COVID-19 Questions and Answers 

Post Forbearance Options:

Upon completion of the forbearance, Montana Housing will work with borrowers to resolve past due payments by offering an affordable repayment plan or evaluate borrowers for all available loss mitigation options.

Commitment to Fair Housing 

Montana Housing makes all determinations with respect to the adequacy of the borrower’s income in a uniform manner without regard to race, color, religion, sex, national origin, familial status, handicap, marital status, actual or perceived sexual orientation, gender identity, source of income of the borrower, or location of the property.

Fair housing violations and complaints may be reported online using the HUD Form 903 Online Complaint, contacting HUD’s local FHEO Regional Office or by calling the Fair Housing Complaint Hotline at 1-800-669-9777.

Visit our page on  fair housing for more information. 

Annual Statements

Montana Housing mails two statements to borrowers each year:

  • Year-End Statement is issued in January for tax purposes and includes details on interest, taxes, insurance and mortgage principal paid during the prior year.
  • Escrow Account Disclosure Statement details monthly applied payments and disbursements for property taxes and insurance from the borrower’s escrow account. Additional escrow analysis information is included in the Welcome Packet.