In Mortgagee Letter 2020-40, the U.S. Department of Housing and Urban Development (HUD) extended the effective date for certain guidance related to the COVID-19 national emergency from November 30, 2020, to December 31, 2020.

Specifically, the guidance regarding the verification of business operations for self-employed borrowers and the use of rental income for qualification purposes now applies to loans for which case numbers are assigned on or before December 31, 2020, and the guidance regarding rehabilitation escrow accounts in connection with 203(k) loans now applies to open escrow accounts through December 31, 2020. 

In Mortgagee Letter 2020-39, HUD extended the guidance for the endorsement of mortgage loans when the borrower has been granted a COVID-19 forbearance to December 31, 2020.