On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. This put in to place two key protections for homeowners with federally backed mortgages:
A subsequent statement was released by six agencies on April 3, 2020, which addressed the vital role mortgage servicers play in assisting consumers who face challenges in paying their mortgages, as well as the temporary business disruptions and challenges for mortgage servicers, including staffing challenges, that could impede their ability to assist consumers at this critical time.
The agencies included the following:
To ensure that servicers have the capacity to offer these protections and continue their efforts in assisting consumers, the agencies informed servicers of the agencies’ flexible supervisory and enforcement approach to the Regulation X mortgage servicing rules.
As of April 3, 2020, and until further notice, in evaluating compliance with Regulation X, 12 CFR 1024, if a mortgage servicer offers or provides a borrower a short-term option, including a CARES Act forbearance, the agencies don’t intend to take supervisory or enforcement action against servicers for the following:
For more information, please contact your Moss Adams professional.