Fri, 20 Dec 2024 13:16:35 -0500WeeblyFri, 13 Sep 2024 14:58:39 GMThttp://lawofficeofmmm.com/in-the-news/cfpb-slaps-td-bank-with-28m-fine-for-consumer-protection-violationsSource:  Housingwire
Author:    Connie Kim

The Consumer Financial Protection Bureau (CFPB) has ordered TD Bank to pay $28 million for illegal actions that could tarnish consumer credit reports and for not taking timely action to correct its errors.
The CFPB’s investigation found that for several years, TD Bank repeatedly gave inaccurate account information to consumer reporting companies, which at times contained systemic errors about personal bankruptcies and credit card delinquencies, the bureau said Wednesday.
Consumer credit reports are used by financial institutions, employers and landlords to decide whether to extend credit, housing or employment to a consumer.
The bank will pay $7.76 million in restitution to tens of thousands of customers and a $20 million civil penalty, according to the CFPB, due to violations of the Fair Credit Reporting Act and the Consumer Financial Protection Act.
CFPB’s investigation revealed that the bank identified hundreds of thousands of deposit account openings that were either confirmed or suspected to be fraudulent by January 2022.
More than year later, the bank kept sharing fraudulent information about these accounts as if they belonged to the bank customers, the bureau said. 
“The CFPB’s investigation found that TD Bank illegally threatened the consumer reports of its customers with fraudulent information and then barely lifted a finger to fix it,” CFPB Director Rohit Chopra said in a statement.
“Rather than treating its customers fairly and following the law, TD Bank’s management clearly cared more about growth and expanding its empire through mergers. Regulators will need to focus major attention on TD Bank to change its course.”
TD Bank said it cooperated to fully resolve the matter and is committed to continuing to deliver on its responsibilities to its customers.
“Long before this settlement, TD self-identified these matters and voluntarily and proactively implemented enhancements to our furnishing and dispute handling practices,” a spokesperson at TD Bank said in an emailed response to HousingWire.
Headquartered in New Jersey, TD Bank operates about 1,250 locations across the country. It offers credit cards and deposit accounts, among other products and services. The bank had $370 billion in total assets in the second quarter of 2024.
In the mortgage space, TD Bank was the 55th-largest U.S. lender in the first quarter of 2024, originating $987 million in loans. That figure was down 34.6% year over year, according to Inside Mortgage Finance estimates.
In August 2020, the CFPB ordered TD Bank to pay $122 million in fines and restitution for charging fees to consumers for ATM withdrawals and one-time debit card transactions without obtaining their consent to an optional overdraft service.

Full the full article, click here.

]]>Tue, 13 Aug 2024 16:43:34 GMThttp://lawofficeofmmm.com/in-the-news/cfpb-takes-action-to-stop-contract-for-deed-investors-from-setting-borrowers-up-to-failFOR IMMEDIATE RELEASE:
August 13, 2024
CONTACT:
Office of Communications
press@cfpb.gov


CFPB affirms that contracts for deed must comply with longstanding federal mortgage protections

WASHINGTON, D.C. — The Consumer Financial Protection Bureau (CFPB) today released an advisory opinion and research report on a form of home seller financing that is often referred to as contract for deed. Under contract-for-deed deals, the seller agrees to turn over a home’s deed only after the buyer completes a series of payments. The deals often have little oversight, and investment groups and other sellers can set a series of traps that leave buyers in unlivable homes, on the hook for tax liens and expensive repairs, and at risk of losing their down payments and homes. The advisory opinion affirms that federal home lending rules and laws cover contracts for deed and provide key consumer protections. The report describes how predatory lenders use contracts for deed to target low-income borrowers, particularly in religious communities, and set them up to fail so the sellers can kick them out and repeat the process with a new family.
The advisory opinion is being released in conjunction with a field hearing the CFPB is holding today in St. Paul, Minnesota. Contract for deed loans have become increasingly prevalent in the Twin Cities’ Somali Muslim community. The loans are often marketed as a way for community members to abide by the principles of their faith that prohibit paying or profiting from interest.
“The CFPB has found that investors are targeting people of faith with predatory mortgage products that set the borrower up to fail,” said CFPB Director Rohit Chopra. “The government is taking action to ensure that these products do not turn the dream of homeownership into a nightmare.”    
Contracts for deed – also called “land contracts,” “installment land contracts,” “land sales contracts,” or “bonds for deed” – typically cover the purchase of homes. They are structured such that the seller retains the legal title to a home until the borrower completes all the payments. During the contract term, the borrower often carries the responsibilities of homeownership, including repairs, property taxes, and improvements. In today’s report, the CFPB traces the history of contract-for-deed lending. The CFPB has found that these products often target Black, Hispanic, immigrant, and religious communities.
Many lenders using contracts for deed generally sell homes at inflated prices, with high interest rates and balloon payments. The prices can be high because sellers are not competing against banks or other mainstream mortgage lenders, and the homes come without the benefit of inspections associated with mainstream mortgage financing that identify defects in a home. Contract-for-deed sellers often also have no stake in whether borrowers can afford the loan over the long term because they can generally kick buyers out immediately if the buyers miss even a single payment, and then resell the home at an even higher price to the next family.
Many contracts for deed come laden with traps like balloon payments that make it highly unlikely the borrowers will ever get full legal title to their homes. Available data shows that contracts for deed have much higher failure rates than mainstream mortgage loans.
However, while many sellers have abused this financing structure to trick buyers and churn homes, these contracts are in fact covered by the federal Truth in Lending Act. This law imposes certain requirements on larger sellers – often investment groups – such that they must:

• Assess borrowers' ability to repay loans: Determining a borrower's ability to repay makes sure they can afford to repay loans, including contracts for deed. Many people who bought homes through contracts for deed - and were kicked out of their homes for missed payments - would have been protected against these predatory products had the seller assessed ability to repay.
• Provide informative and accurate disclosures: Sellers must provide the Truth in Lending Act’s required disclosures. These disclosures include the annual percentage rate and payment schedules. Predatory lenders will sometimes market contracts for deed to faith communities and lead buyers to believe that the contracts conform to religious bans on interest. However, the loans either do come with high, undisclosed interest rates or the interest rates are hidden through other means.
• Limit balloon payments: Many contracts for deed come with interest rates much higher than those commonly charged on traditional mortgages. Under the Truth in Lending Act, when an interest rate on a home loan is higher than certain published benchmarks, additional requirements and consumer protections are activated. One of those important protections is that most balloon payments are banned. Balloon payments can be especially harmful to contract-for-deed borrowers who stand to lose all the money they have previously paid if they cannot afford to pay a large lump sum all at once.

Today’s advisory opinion and report are part of the CFPB’s efforts to rid the market of predatory and exclusionary home lending practices. The CFPB has taken actions to protect consumers from redlining, reverse redlining, digital redlining, predatory financing, and zombie mortgages. The CFPB also worked with federal partners to finalize rules to ensure automated valuation models do not engage in digital redlining practices.

For the full article, please click here.



]]>Thu, 30 Mar 2023 16:49:40 GMThttp://lawofficeofmmm.com/in-the-news/what-to-expect-at-your-foreclosure-mediation-in-district-of-columbia-and-maryland]]>Thu, 30 Mar 2023 16:42:00 GMThttp://lawofficeofmmm.com/in-the-news/clarification-on-the-role-of-the-mortgage-servicer-the-court-and-the-impact-of-judgment-in-district-of-columbia-foreclosure-casesI am still hearing borrowers say “I was just going to wait until the next court date to….”   I want to make very clear that NO ONE should be “waiting for the next court date” to make a decision about how to proceed with whatever it is that you want to do with your property. As discussed below, the court does not make decisions for Plaintiff about how Plaintiff can proceed other than to award Plaintiff judgment after Plaintiff files its motion for judgment (Motion for Summary Judgment, Motion for Judgment on the Pleadings, etc).  There should be no waiting to pull the trigger on a decision in this process….you should be acting immediately at all times. If you want to apply for HAF, loss mitigation, schedule an appointment (via email preferably) with your housing counselor and get the complete application in now. If you want to sell, get it listed now. If you don’t know what info your servicer still needs or if your application is complete, call the servicer now.  If you want to file for bankruptcy, consult with a bankruptcy attorney now. If you don’t know what to do, ask me now.  This process can only work if you do the work!
 
STEP 1 – MAGISTRATE JUDGE 
 
In DC, most lenders are opting to pursue foreclosure via judicial means.  Plaintiff comes to court, files the complaint and the case is started.  The homeowner/borrower is a named defendant. Because the court acknowledges that borrowers need a final attempt to pursue loss mitigation to sale, the court allows borrowers to appear before the Magistrate Judge to participate in a loss mitigation submission and mediation.  
 
Servicer’s role:  The servicer receives the loss mitigation package, reconciles the borrower’s financials with the investor guidelines and decides whether to make a home retention offer to the borrower.  The servicer is the sole party responsible for reviewing and deciding about loss mitigation options.  Plaintiff’s counsel is not involved in this process other than to pass along any documents received from the borrower to the servicer.  
 
Court’s role:  The court only has the authority to manage the case and court events. The court is not involved in the loss mitigation process and cannot dictate to the Plaintiff or servicer what to offer to the borrower.  If there is a problem with the review or the servicer’s conduct, that can be brought to the court’s attention but only to ensure that the case does not move forward inappropriately.  All claims or issues that you wish the court to make a ruling on MUST be included in a written motion (or Counterclaim) that has been filed with the court. The court has very limited authority to grant oral requests.
                        
Once the loss mitigation attempt has been exhausted (and/or no offer made by the servicer), the case is done with the Magistrate Judge portion and will be assigned to either the trial track or judgment calendar.  Borrowers can raise any defenses (in their Answer) or affirmative claims (in their Counterclaim) that may be available, but the underlying lawsuit is solely about the mortgage default. 
            
STEP 2A - TRIAL TRACK
If a borrower has raised defenses or affirmative claims that need to be heard by a judge at trial, the case will be assigned to a trial track (usually Track 2).  Borrowers will get a copy of a scheduling order that day that will outline the upcoming deadlines for the case that prepare you for trial. NOTE:  Many borrowers think that trial is automatic if you are on the trial track….this is incorrect. You have to survive the dispositive motion (Motion for Summary Judgment, Motion for Judgment on the Pleadings, etc) in order to get to trial. If the judge grants the dispositive motion and judgment is awarded, there is no trial and the substantive litigation ends and the next step is that Plaintiff will advertise and schedule a sale date.  If the judge denies the dispositive motion, then the next step is pre-trial conference and trial.  
 
Servicer’s role:  Before and after judgment is awarded, you are still able to submit another loss mitigation but it is up to the servicer to review prior to the sale. The mere submission of a loss mitigation package before or after judgment has been entered does NOT in and of itself stop the entry to judgment or the scheduling of the sale.  This is why it is imperative to remain in direct, regular contact with the servicer to confirm that your loss mitigation package is complete and see if they will agree to stop the sale (if judgment has been entered).  
 
Court’s role:  The court only has the authority to manage the case and court events. When you appear before the judge, if a motion has been filed and it is ready for ruling (meaning more than 14 days have transpired since it was filed), the judge will rule on the motion. If the motion is denied, the case moves forward to trial. If the motion is granted, the substantive litigation ends and Plaintiff has judgment and is permitted to schedule a sale date. Once the motion is granted and judgment is entered, there is nothing further for the court to do until the sale has occurred and the Plaintiff has filed its Motion to Ratify the Sale.  Once judgment is entered, the judge does not have the authority to stay the sale unless the borrower files an injunctive motion. 
 
OR
 
STEP 2B - JUDGMENT CALENDAR
If there are no defenses or affirmative claims raised, the case will be assigned to the judgment calendar.  In a judicial foreclosure, the Plaintiff cannot set a sale until it has judgment and the Plaintiff cannot get judgment until it files a motion (Motion for Summary Judgment, Motion for Judgment on the Pleadings, etc). Once you are assigned to the judgment calendar, you are basically waiting for the Plaintiff to file its motion (while you are pursuing the final options).  Once the judge grants the motion and judgment is awarded, the next step is for Plaintiff to start advertising and set the foreclosure sale.
 
Servicer’s role:  Before and after judgment is awarded, you are still able to submit another loss mitigation but it is up to the servicer to review prior to the sale. The mere submission of a loss mitigation package before or after judgment has been entered does NOT in and of itself stop the entry to judgment or the scheduling of the sale.  This is why it is imperative to remain in direct, regular contact with the servicer to confirm that your loss mitigation package is complete and see if they will agree to stop the sale (if judgment has been entered).  
 
Court’s role:  The court only has the authority to manage the case and court events. When you appear before the judge, if a motion has been filed and it is ready for ruling (meaning more than 14 days has transpired since it was filed), the judge has the discretion to grant the motion and enter judgment.  If you are under review (and Plaintiff’s counsel confirms that you are under review), the judge may hold off on ruling until the next status hearing or she could grant the motion and stay enforcement until some identified date. She could also grant the motion.  Once the motion is granted and judgment is entered, there is nothing further for the court to do until the sale has occurred and the Plaintiff has filed its Motion to Ratify the Sale.  Once judgment is entered, the judge does not have the authority to stay the sale unless the borrower files an injunctive motion. 
 
Feel free to schedule a phone consult with me!
]]>Thu, 30 Mar 2023 16:38:09 GMThttp://lawofficeofmmm.com/in-the-news/post-foreclosure-eviction-in-district-of-columbiaI have gotten a few questions this month about the post-sale eviction timeline and how long a homeowner can remain in the property after the sale.  The uncomfortable answer is that there isn’t really an answer.  There are no deadlines or dates by which a foreclosure purchaser (defined below) must proceed with the eviction process. It also depends on who purchases at the auction.  Eviction is a legal process…this means that the purchaser MUST provide you with a 30-day notice to vacate, file a Complaint for Possession of Real Property in Landlord Tenant Court, appear in court, and get a Judgment of Possession.  Until all of those steps occur, the purchaser does not have any legal authority to evict you from the property OR to enter your property for any reason.  Once the case is filed, you can access the eviction case online at the DC Courts website.  

Let’s clarify the basics…
 
In the foreclosure case, once the judge grants Plaintiff’s motion for judgment and enters written judgment in favor of Plaintiff, it means that Plaintiff is legally authorized to select a sale date and start advertising the sale (once per week for 4 consecutive weeks).  You, as a homeowner, will receive a Notice of Sale by regular and certified mail between 10-30 days before the sale date. You can contact your servicer in order to confirm if a sale date has been scheduled in the interim.
 
Don’t wait for the status hearing to ask for more time….
 
Once judgment is entered, the judge does not have the authority or ability to make any decision about the foreclosure sale or eviction regardless of whether a status hearing happens after judgment is entered.  The judge does not have the ability to stop or otherwise interfere with the sale after judgment is entered.  The judge does not have anything at all to do with eviction, how long you can stay in the property or any offers of cash for keys/relocation expenses even though there will still be status hearings occurring in the foreclosure case.  Plaintiff’s counsel will schedule the sale date based on the direction of the servicer so if you have a settlement pending, loss mitigation under review or short sale review pending, you need to be in almost daily contact with the servicer and Plaintiff’s counsel to confirm that they didn’t set the sale while you are awaiting the decision.

So long as the foreclosure case is open, the judge will schedule status hearings to ensure that the Plaintiff files its Motion to Ratify Sale and Motion to Ratify Accounting and Close Case.  Those two (2) post-sale motions are the only remaining items that the judge deals with after judgment has been entered. 
 
This is where the process gets a little confusing for most…  
 
The foreclosure sale is a public auction. The Plaintiff (via trustee or agent) makes the opening bid based on the total amount of money owed to it per the Note.  If a third party (individual, company, investor, etc.) is present and makes a higher bid, the third party wins the bid and becomes the third-party purchaser (“TPP”) of the auction.  The TPP leaves the auction with a Memorandum of Sale noting the final bid price that must be paid within 60 days of settlement.  If no third party makes a higher bid than Plaintiff’s opening bid, Plaintiff wins the bid by default.  We refer to this as a lender buyback.  Either way, you no longer own the property after the foreclosure sale occurs (even though there will still be a deed reflecting that you are the most recent record owner).
 
How fast the eviction process commences depends mostly on whether the TPP or the Plaintiff wins the bid.  In my experience, if the Plaintiff wins the bid, they usually continue to finish the foreclosure case before proceeding with the eviction case. In my experience, if the TPP wins the bid, they tend to move a lot faster (NOTE: this does not mean that the TPP has to or will move faster…just that they normally do).  In DC, the Memorandum of Sale given at the auction is sufficient to provide the TPP with standing to file an eviction case in the Landlord Tenant Court and obtain a Judgment of Possession against you. The TPP does not have to go to closing and get title to the property in order to evict you. 
 
The most important takeaway is that there are no surprises in this process.  You can find out who purchased your property at the auction once the Motion to Ratify Sale is filed.  You will be served with the 30-day notice to vacate letter by the purchaser/TPP.  If you choose not to leave (which you can absolutely do), the purchaser/TPP must file a Complaint in Landlord Tenant Court and serve you with a copy of the Summons and Complaint.  The Summons will contain the initial hearing date for the eviction case. NOTE:  All hearings are still virtual in Landlord Tenant Court so keep an eye out for the WebEx login instructions.  When you appear in court, you can discuss the case with the purchaser’s counsel to see if they will offer a vacate agreement (a firm move-out date and relocation expense funds). If no agreement, the judge will usually enter judgment in favor of the purchaser/TPP.  After the Judgment of Possession is entered, the purchaser/TPP has up to ninety (90) days to file the Writ of Restitution.  The Writ of Restitution is what authorizes the Marshal to execute the eviction (which can happen as soon as three (3) days after the Writ is issued).  The Writ is good for 75 days.

COVID changes the rules slightly so homeowners are no longer in danger of having their belongings placed outside the property during the eviction BUT there is a seven (7) day window after the eviction in which the homeowner has to contact the purchaser/TPP and let them know when he/she intends to retrieve belongings still inside the home. The locks are changed during eviction so contacting the purchaser/TPP is the only way for the homeowner to access the property.  After the seven (7) day period expires, the belongings inside the home are deemed abandoned so the purchaser/TPP can choose how to dispose of the belongings.

 Feel free to schedule a phone consult with me!
]]>Fri, 01 Jul 2022 16:18:15 GMThttp://lawofficeofmmm.com/in-the-news/residential-mortgage-foreclosure-moratorium-expires-june-30-2022The District of Columbia Department of Insurance, Securities and Banking (DISB) wants residents to be aware that the District’s foreclosure moratorium on residential mortgages expires on June 30, 2022.

On JUNE 30, 2022, the moratorium on residential foreclosures will expire. What does this mean for homeowners?

• Lenders cannot foreclose on homeowners until after June 30 if the property is occupied.
• When the moratorium ends, foreclosure proceedings will resume unless homeowners are under review for the Homeowner Assistance Fund (HAF) administered by the Department of Housing and Community Development (DHCD).
• If homeowners are under review for HAF, the moratorium is extended until September 30, 2022.
• Mortgage payments are still due unless homeowners have entered into loss mitigation agreements with their lenders.
• Be proactive and contact the Foreclosure Prevention Hotline or your servicer.

How To Avoid Foreclosure
Step 1: Contact the Foreclosure Prevention Hotline at (202) 265-2255.Free HUD-approved housing counselors will assist District homeowners with preparing loss mitigation requests, contacting the mortgage servicer with the homeowner to determine what options are available, and exploring financial assistance programs available to District homeowners.
Step 2: Communicate with your servicer.Take control by accepting calls from your mortgage servicer. Even better, call your mortgage servicer as soon as you know you can’t make your monthly payment. The phone number is on your monthly bill. Tell your servicer why you can’t make your monthly payment and ask the servicer for help avoiding foreclosure.


Step 3: Be aware of scams.Scam artists try to take advantage of homeowners who get into trouble by charging a lot of money—even thousands of dollars—for false promises of help. You should not have to pay anyone to help you avoid foreclosure. The help you need is available at no cost to you from your servicer, or through a HUD-approved housing counseling agency. Find a HUD-approved housing counseling agency at consumerfinance.gov/find-a-housing-counselor.
Step 4: Apply for help.Your loan servicer must contact you, provide you with accurate information, and tell you about your loss mitigation options. Loss mitigation refers to the ways your servicer can work with you to avoid foreclosure. If you send in a complete application to your mortgage servicer early enough, your mortgage servicer must tell you the options you have to keep your home, or if it makes more sense, to leave your home.
Housing counselors have extensive experience helping people work on avoiding foreclosure. They can assist you with the complicated steps to understand your options and apply for help. Your mortgage servicer can’t make a first notice or filing for foreclosure until you are more than 120 days behind on your payments. In addition, when you submit a complete application for mortgage help early enough, the mortgage servicer can’t start the foreclosure process while you’re being evaluated or if you are following through on the requirements of a loan modification.
Once HAF is fully implemented, apply for assistance on the DHCD website at https://dhcd.dc.gov/haf.
Don’t wait, get it done today. The earlier you complete the application, the more protections you get.
Report Fraud
If you suspect someone who contacted you is a scammer, file a complaint with the DISB Enforcement and Consumer Protection Division at (202) 727-8000 or visit disb.dc.gov/page/consumer-services-division.
If you, or someone you know, is experiencing mortgage problems, please contact Ben Arnold, DISB Foreclosure Prevention and Mediation Administrator, at (202) 442-7765 or via email at benjamin.arnold@dc.gov. You may also visit disb.dc.gov/page/foreclosure-prevention-program.
DISB Mission
Our mission is three-fold: (1) cultivate a regulatory environment that protects consumers and attracts and retains financial services firms to the District; (2) empower and educate residents on financial matters; and (3) provide financing for District small businesses.

For the full release, please visit:  disb.dc.gov/page/residential-mortgage-foreclosure-moratorium-expires-june-30-2022

]]>Wed, 02 Dec 2020 20:40:19 GMThttp://lawofficeofmmm.com/in-the-news/fhfa-extends-foreclosure-and-reo-eviction-moratoriumsFHFA Extends Foreclosure and REO Eviction Moratoriums Foreclosure moratorium applies to Enterprise-backed mortgages; eviction moratorium applies to Enterprise-owned properties.

FOR IMMEDIATE RELEASE

12/2/2020 Washington, D.C. –Today, to help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least January 31, 2021. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on December 31, 2020. 
“Extending Fannie Mae and Freddie Mac's foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic," said Director Mark Calabria. “This extension gives peace of mind to the more than 28 million homeowners with an Enterprise-backed mortgage."
Currently, FHFA projects additional expenses of $1.1 to $1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. This is in addition to the $6 billion in costs already incurred by the Enterprises. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed. To understand the protections and assistance offered by the government to those having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing

For the full article, please visit https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Extends-Foreclosure-and-REO-Eviction-Moratoriums-12022020.aspx .
]]>Wed, 17 Jun 2020 14:37:51 GMThttp://lawofficeofmmm.com/in-the-news/fhfa-extends-foreclosure-and-eviction-moratorium7874841FHFA Extends Foreclosure and Eviction Moratorium Moratorium applies to Enterprise-backed mortgages
Today, to help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend their moratorium on single-family foreclosures and evictions until at least August 31, 2020.  The foreclosure and eviction moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on June 30th.  
“To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium. During this national health emergency no one should worry about losing their home,” said Director Mark Calabria.
FHFA will continue to monitor the coronavirus situation and update policies as needed. To understand the protections and assistance the government is offering people having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.Author:  Federal Housing Finance Agency


]]>Thu, 14 May 2020 18:39:17 GMThttp://lawofficeofmmm.com/in-the-news/fhfa-announces-payment-deferral-as-new-repayment-option-for-homeowners-in-covid-19-forbearance-plansAuthor:  Federal Housing Finance Agency   (www.fhfa.gov)

FOR IMMEDIATE RELEASE

5/13/2020 Washington, D.C. – Today, to help homeowners who are in COVID-19 related forbearance, the Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac (the Enterprises) are making available a new payment deferral option. The payment deferral option allows borrowers, who are able to return to making their normal monthly mortgage payment, the ability to repay their missed payments at the time the home is sold, refinanced, or at maturity.
“For homeowners in forbearance due to COVID-19, payment deferral allows them to make up missed forbearance payments when they sell their home or refinance,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers. Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid.”
In response to the COVID-19 national emergency, borrowers with a financial hardship due to the pandemic have been able to receive forbearance, which is a pause or reduction in their monthly mortgage payment. The missed payments will have to be paid back by the borrower after the forbearance ends. FHFA and the Enterprises do not require lump sum repayment at the end of the forbearance. Servicers are required to evaluate borrowers for one of several repayment options, generally referred to as a “hierarchy" of repayment and loan modification options.
Payment deferral is one of the repayment options. Payment deferral takes the missed mortgage payments and puts them into a payment due at the sale, or refinancing of the home, or the end of the loan. The borrower's monthly mortgage payment will not change. Mortgages that exercise the payment deferral option will remain in Enterprise Mortgage-Backed Securities, subject to the terms of the trust agreements.
Servicers will begin offering the payment deferral repayment option starting July 1, 2020.
In addition to the new payment deferral option, borrowers with COVID-19 related hardships can still utilize other options that include reinstatement, repayment plan, or loan modifications based on their individual situations.
Fannie Mae: Understand Your COVID-19 Mortgage Options
Freddie Mac: Lump Sum Repayment is Not Required in Forbearance
FHFA will continue to monitor the coronavirus situation and update policies as needed.

Full the full text of the article, please visit www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Payment-Deferral-as-New-Repayment-Option-for-Homeowners-in-COVID-19-Forbearance-Plans.aspx


]]>Thu, 14 May 2020 18:36:08 GMThttp://lawofficeofmmm.com/in-the-news/cfpb-fhfa-and-hud-launch-joint-mortgage-and-housing-assistance-website-for-americans-impacted-by-covid-19Author:  Federal Housing Finance Agency   (www.fhfa.gov)


FOR IMMEDIATE RELEASE
5/12/2020
​
​Joint Release
Consumer Financial Protection Bureau
Department of Housing and Urban Development
Federal Housing Finance Agency


Washington, D.C. – ​To ensure homeowners and renters have the most up to date and accurate housing assistance information during the COVID-19 national emergency, today the Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD) launched the new mortgage and housing assistance website, cfpb.gov/housing. 
FHFA and HUD are offering extensive CARES Act assistance and protection for Americans having trouble paying their mortgage or rent during the COVID-19 national health emergency. This joint website consolidates the CARES Act mortgage relief, protections for renters, resources for additional help, and information on how to avoid COVID-19 related scams. It also provides lookup tools for homeowners to determine if their mortgage is federally backed, and for renters to find out if their rental unit is financed by FHA, Fannie Mae, or Freddie Mac.
“This invisible enemy has a lot of Americans concerned about how they are going to stay safe and make ends meet," said HUD Secretary Ben Carson. “No one should lose their home because of Coronavirus, and this new website is full of resources to help property owners and renters navigate these unprecedented times. HUD is continuing to monitor the needs of our FHA borrowers and HUD-assisted families, and we are prepared to take additional actions as needed."
“During these uncertain times, consumers need reliable, fair, and accurate information on the protections and relief options available to them. This joint website achieves this important goal for homeowners and renters, outlining clearly the changes that policymakers are making to assist them," said CFPB Director Kathleen L. Kraninger. “The Bureau will continue to do everything we can to protect the economic security of consumers."  
“Protecting and empowering borrowers and renters while ensuring the mortgage market functions as efficiently as possible has been a priority for FHFA during the national health emergency," said Director Mark Calabria. “This joint website is a one-stop shop for information about the housing protections and assistance available from the government during this unprecedented crisis."
“Our interagency team began working at the immediate onset of the emergency to address the nation’s housing challenges. This new resource was part of that effort, and will provide immeasurable value to the nation’s homeowners and renters during this critical time,” said FHA Commissioner Brian Montgomery. “For those in FHA-insured homes or Multifamily rental properties, we are here to tell you that help is available for those that need it. We’re using every available method, like this new website, to get the message out.”
In addition to the tools made available by HUD and FHFA, CFPB has partnered with FHFA on the Borrowers Protection Program that enables the agencies to share servicing information to protect borrowers during the coronavirus national emergency.
The CFPB has taken numerous steps to protect and assist consumers during the COVID-19 national emergency including making it easier for consumers to receive pandemic-relief payments; informing consumers about their options as it relates to mortgage forbearance; ensuring consumers will be able to continue to send remittance transfers without disruption; releasing a policy statement outlining the responsibility of credit reporting companies and furnishers; and, providing needed flexibility to enable financial companies to work with customers in need.  The Bureau continues to process consumer complaints through the consumer complaint system. Through the consumer complaint system, the CFPB gets responses from companies to resolve consumer issues and takes the information into account in supervisory and enforcement work.  The CFPB has also released timely information on new programs aimed at helping struggling consumers during this time. These programs include  student loan payment suspension; mortgage forbearance; stimulus payments; and the paycheck protection program.   Additionally, the Bureau has a centralized webpage with information on how consumers can protect their finances during the pandemic.
FHFA's regulated entities, the Enterprises and the Federal Home Loan Banks provide more than $6.3 trillion in funding for the U.S. mortgage market and set the standard for how the mortgage system works. In response to the COVID-19 national emergency the Enterprises permitted borrowers with a financial hardship due to the pandemic the ability to enter into forbearance, a pause or reduction in their monthly mortgage. The missed payments will have to be paid back by the borrower. FHFA does not require lump sum repayment at the end of the forbearance. The missed payments can be added to the normal monthly payments, paid back all at once, tacked on to the end of the loan, or the borrower can have the term of the loan extended. Renters who live in a multifamily property with an Enterprise-backed mortgage cannot be evicted due to a COVID-19 loss of income. To see the additional actions FHFA has taken to help Americans impacted by the coronavirus remain in their homes, please visit the newly launched joint website. 
Part of HUD's Office of Housing, the Federal Housing Administration (FHA) is the largest mortgage insurer in the world with an active insurance portfolio of over $1.3 trillion. In response to the COVID-19 national emergency, FHA permitted borrowers to enter into forbearance, a pause or reduction in their monthly mortgage for up to six months. Borrowers can request an additional six months if needed. FHA does not require lump sum repayment at the end of the forbearance. FHA has developed the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current, or less than 30 days delinquent as of March 1, 2020, they may be entitled to this option. A partial claim is a zero interest, no fee, junior lien on the borrower's property that will become payable when the borrower sells their home, pays off their mortgage, or their mortgage otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help repay missed payments over time. For more information on FHA mortgages please call 1-800-CALL-FHA (1-800-225-5342), or visit www.hud.gov/coronavirus or please visit the newly launched joint website.
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Contacts:
CFPB
FHFA
HUD
Marisol Garibay
Raffi Williams
Brad Bishop

202-435-7170
202-649-3544
202-422-0625
Full the full text of the article, please visit www.fhfa.gov/Media/PublicAffairs/Pages/CFPB-FHFA-HUD-Launch-Joint-Mortgage-and-Housing-Assistance-Website-for-Americans-Impacted-by-COVID-19.aspx


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