With many COVID-19 mortgage forbearance programs winding down, the CFPB and the Department of Justice today sent letters to mortgage servicers reminding them of service member and veteran mortgage borrowers’ rights under federal laws and regulations, including the CARES Act, the Servicemembers Civil Relief Act, Regulation X and Regulation Z.
Here are five actions banks can take to stay out of trouble.
As more borrowers exit COVID-19 forbearance programs, the Biden administration today announced several new relief measures designed to help mortgage borrowers with loans through the Department of Housing and Urban Development, Department of Veterans Affairs and the Department of Agriculture avoid foreclosure.
As expected, the Consumer Financial Protection Bureau today finalized a rule to facilitate streamlined loan modification efforts and establish a temporary COVID-19 emergency pre-foreclosure period under Regulation X that would prohibit servicers from making the first notice or filing required to initiate foreclosure until Dec. 31.
The Department of Veterans Affairs last week finalized a rule establishing a new COVID-19 Veterans Assistance Partial Claim Payment Program.
COVID-19 continues to pose significant compliance challenges for mortgage servicers.
A recent analysis of mortgages by the CFPB found that an estimated 4.7% of owner-occupied properties were in forbearance as of March 2021, while about 0.5% of mortgages were 60 or more days delinquent.
The Consumer Financial Protection Bureau today proposed to establish a temporary COVID-19 emergency pre-foreclosure review period under Regulation X that would prohibit servicers from making the first notice or filing required to initiate foreclosure until Dec. 31.
In a compliance bulletin issued today, the Consumer Financial Protection Bureau called on mortgage servicers to “take all necessary steps now”—including ensuring adequate staffing and resources—to be prepared to work with customers exiting COVID-19 forbearance programs this fall.
More than 10% of respondents in a recent Federal Reserve Bank of Philadelphia survey said they had entered mortgage forbearance at some point during the pandemic, with 6.4% currently in a forbearance plan and 4.1% reporting they had previously been in forbearance since March 1, 2020.