Author: Federal Housing Finance Agency   (www.fhfa.gov)

FOR IMMEDIATE RELEASE
5/14/2020 ​Washington, D.C. – 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) are extending their moratorium on foreclosures and evictions until at least June 30, 2020.  The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The current moratorium was set to expire on May 17th.  
“During this national health emergency, no one should be forced from their home," said Director Mark Calabria. “Extending the foreclosure and eviction moratoriums protects homeowners and renters with an Enterprise-backed mortgage and provides certainty for families.”
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.​

For the full text of the article, please visit https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Extends-Foreclosure-and-Eviction-Moratorium.aspx?utm_medium=email&utm_source=govdelivery

Author:  Martin Austermuhle   (www.wamu.org)

This story was updated on April 8.

The votes may have come from their living rooms, but on Tuesday the D.C. Council unanimously approved an emergency bill extending additional relief to residents and businesses impacted by the coronavirus pandemic.
The measure — approved during the Council’s first-ever virtual meeting, conducted via Zoom — puts a halt on rent increases during the ongoing public health emergency and 30 days after it ends and requires some mortgage companies to offer property owners a 90-day deferral on payments.
It also prohibits debt collection lawsuits from being filed during and within 60-days of the end of the current state of emergency, bans telephone and internet cutoffs, offers consumer protections for families needing funeral services through the creation of a “Funeral Bill of Rights,” and gives older and frail incarcerated felons a means to have their sentences cut short.
The bill also establishes a $25 million fund to reimburse local hospitals that add beds to deal with the pandemic, waives community service requirements for graduating seniors, and allows for the use of electronic wills. It authorizes the D.C. Board of Elections to send every voter an absentee ballot request form as a means to encourage as many people as possible to vote by mail, and lets Chief Financial Officer Jeffrey DeWitt borrow $500 million to address possible cash flow issues that could emerge over the summer due to the economic slowdown.
“We are doing a lot of things for a lot of people,” Council member Robert White (D-At Large) said, referencing the two emergency bills the Council has passed in response to the pandemic. “We can’t do everything for everyone. I do want to note my disappointment that we have not been able to create a fund for workers who are not covered.”
White was referencing the decision to exclude provisions from the bill that would have created a mechanism to offer financial assistance akin to unemployment benefits to undocumented and non-traditional workers like street vendors, day laborers and child care workers.
“This virus and its economic impacts know no profession or immigration status, nor should the assistance we extend,” echoed Council member David Grosso (I-At Large). “They are vital to the fabric of our society, and they are hurting as much as the rest of us,” added Council member Brianne Nadeau (D-Ward 1).
Chairman Phil Mendelson said the estimated cost of the two provisions — which he pegged at more than $75 million — prompted their removal, but he and Mayor Muriel Bowser have continued to discuss how to support undocumented residents who may not have access through federal and local programs.
“It was priced out with a significant cost at a time when we are looking at a probably $607 million drop in revenue that we are going to have to close,” he said. “There continue to be discussions, I would say fairly energetic discussions, about how we can find relief for these undocumented workers who are otherwise getting little relief. That issue is not being ignored.”
But during the debate, Council member Elissa Silverman (I-At Large) used Zoom’s chat function to push back against Mendelson’s claims about the cost, the 21st century equivalent of whispering in her colleagues’ ears.
The mortgage relief portion of the bill also generated some concern. As written, the provision requires mortgage companies to offer certain borrowers 90-day deferrals of their payments. But some housing advocates said foreclosures should be stopped altogether.
“What we really want is a moratorium,” said Jennifer Lavallee, an attorney at the Legal Aid Society, referring to one put in place in Maryland. The federal recovery bill passed by Congress last month has a similar moratorium, though only for homeowners with federally backed mortgages. (A first emergency bill passed in mid-March prohibits evictions during the emergency.)
Mendelson did address another concern with that portion of the bill. The Council expanded the provision to require any property owner who gets a payment deferral to pass the savings to any tenants they have — whether a resident of a basement unit or a small business located in a strip mall. When the bill was originally written, the provision only applied to commercial tenants.
During extended statements given from the comfort of their homes, lawmakers said they are taking aggressive steps to respond to the pandemic — and doing so under difficult circumstances. But they also said more was left to be done, notably to address how different communities are being impacted by the virus and how a recovery could help them.
“When we look at history, it demonstrates that communities of color are typically left out or find themselves worse off when the experience crises like this. We need to use our resources for the least among us,” said Council member Kenyan McDuffie (D-Ward 5), who included a provision in the bill to offer more government contracts to local and minority-owned businesses. “Despite our best efforts, there are some that won’t fall within the bounds of our safety net.”
But Council member Anita Bonds (D-At Large) sounded an optimistic note: “We are not done yet.”
This story was updated to clarify who would qualify for mortgage payment deferral under the bill.

For the full text of the article visit https://wamu.org/story/20/04/07/in-first-ever-virtual-meeting-d-c-council-passes-bill-freezing-rents-offering-some-mortgage-payment-deferrals/

Author:  Ben Lane    www.housingwire.com


A recent report from Goldman Sachs suggested that a record-shattering number of people are filing for unemployment as the coronavirus cripples the nation’s economy. That’s why there’s likely going to be a giant surge in delinquent mortgages as many borrowers are unable to make their next mortgage payment.

That’s also why the mortgage industry is asking the government to allow mortgage servicers to be able to provide affected borrowers with a 90-day break on their payments.
While that solution would require some serious legwork (more on that here), the two biggest sources of mortgage financing are giving some leeway to borrowers who’ve fallen behind. Fannie Mae and Freddie Mac unveiled today a new “payment deferral” option that will allow borrowers facing a hardship to defer two months of their mortgage payments until the end of their mortgage.
The program was set to be announced later this year, but with the coronavirus wreaking havoc on the country, the GSEs are rolling out the program early to give mortgage servicers another way to help borrowers now.
The payment deferral option isn’t only available for borrowers facing a coronavirus-related hardship. To be eligible for the payment deferral program, borrowers must have faced a short-term hardship that caused them to miss one to two months of mortgage payments.
If the borrower is able to resolve the hardship within that time period and has the financial ability to restart their mortgage payments in full, the borrower will be eligible to defer those two months of payments to the end of their mortgage without needing to significantly modify the loan.
“This innovative relief solution addresses a unique hardship situation – homeowners who have resolved a short-term hardship,” Freddie Mac said in its announcement. “It aims to serve those homeowners with a more affordable workout that’s between a repayment plan and a modification. This is a broad offering that is aligned with Fannie Mae at the direction of the Federal Housing Finance Agency to assist more struggling homeowners.”
Here, from Freddie Mac, is more detail on how the program works:
At Freddie Mac, we recognize that some Borrowers experience temporary financial hardships resulting in an early stage Delinquency that cannot be solved by a reinstatement or repayment plan, but also do not require the more extensive modification of terms that a Freddie Mac Flex Modification would provide. The Payment Deferral is designed to provide relief to eligible Borrowers who have the financial capacity to resume making their monthly payments, but who are unable to afford the additional monthly contributions required by a repayment plan. An eligible Borrower will be brought current by deferring delinquent principal and interest (P&I), creating a non-interest bearing forborne balance that will become due at the earlier of the Mortgage maturity date, payoff date, or upon transfer or sale of the Mortgaged Premises. The remaining Mortgage term, interest rate schedule (i.e., whether a fixed-rate Mortgage, an ARM or Step-Rate Mortgage), payment schedule and maturity date of the Mortgage will all remain unchanged.
To put it in simpler terms, the GSEs will allow certain borrowers to defer two months of their mortgage payments until their mortgage ends or they sell their house.
According to the GSEs, mortgage servicers must begin borrower evaluations for the payment deferral program no later than Jan. 1, 2021, but servicers may begin using this new option with eligible borrowers as early as July 1, 2020.
For more on the program, watch the video below or click on any of these links.


For the full text of the article, please visit https://www.housingwire.com/articles/fannie-mae-freddie-mac-will-let-borrowers-facing-hardship-defer-two-months-of-mortgage-payments/

Author:  Ben Lane      www.housingwire.com

Mortgage relief options are coming fast and furious as the entire country struggles to deal with the spread of the coronavirus.
This week, the Department of Housing and Urban Development, Fannie Mae and Freddie Mac announced that they are suspending foreclosures and evictions for at least 60 days. That was followed by the state of New York declaring that certain borrowers in the state could forgo their mortgage payments for up to 90 days.
Now, one of the nation’s biggest banks is joining New York in stating that borrowers can pause their mortgage payments.
Bank of America announced Thursday afternoon that it is extending “additional support for consumer and small business clients experiencing hardship from the impact of the coronavirus.”
Included among those support options is the ability to defer mortgage payments.
According to the bank, Bank of America mortgage and home equity customers can request to defer their payments while the virus crisis rages. The payments would then be added to the end of their loan.
Basically, borrowers can get a break on their payments now but will have to make those payments eventually.
According to the bank, the payment deferral will be available on a case-by-case basis and can be extended on a month-to-month term.
It should be noted that this policy applies to loans held on Bank of America’s books, not to those backed by Fannie, Freddie, the Federal Housing Administration, etc.
As for those loans, Bank of America said that it is following each agencies’ policies, which are detailed here.
The bank added that there will be no negative credit bureau reporting for up-to-date clients.
But that’s not the only steps Bank of America is taking for its 66 million consumer and small business clients.
The bank is also pausing foreclosure sales, evictions and repossessions.
Beyond that, the bank is taking several other non-mortgage-related steps, including:

• Consumer and Small Business deposit accounts: clients can request refunds including overdraft fees, non-sufficient funds fees and monthly maintenance fees.
• Consumer and Small Business credit cards: clients can request to defer payments, refunds on late fees.
• Small business loans: clients can request to defer payments, refunds on late fees.
• Auto loans: clients can request to defer payments, with payments added to the end of the loan.

All of these options are also available on a case-by-case basis.
The bank said that its client-facing employees are “trained to identify and assist impacted clients and provide the right support to address their unique needs.” Borrowers facing hardship due to the coronavirus are encouraged to contact the bank’s client services team for assistance.
“Our clients rely on us every day and for every aspect of their financial lives,” said Dean Athanasia, president of consumer and small business at Bank of America.
“We’re going to continue to provide convenient access to the important services they count on, and the additional assistance and support they need during this difficult period,” Athanasia added. “Our priorities are taking care of our team and each other, and continuing to fulfill our fundamental role serving our clients.”
[Update: This article is updated with additional information on Bank of America’s policies.]



For full text of the article, please visit https://www.housingwire.com/articles/bank-of-america-will-allow-borrowers-to-pause-their-mortgage-payments/

Effective March 16, 2020, by Administrative Order of the Court:

• All mortgage foreclosure, landlord and tenant, debt collection, tax foreclosure and housing court cases scheduled before May 15, 2020 are continued. The Court will issue new notices regarding dates.
  
• All evictions of tenants and foreclosed homeowners scheduled on or before May 15, 2020 are immediately stayed.
  
• All mediations scheduled before May 1, 2020 will be rescheduled (or possibly held by phone).
  

You can always check the status of your case, as well as download any pleading, order or notice of hearing filed, at https://www.dccourts.gov/superior-court/cases-online.

For full text of the order visit https://www.dccourts.gov/coronavirus

Effective March 18, 2020, by Administrative Order of the Maryland Court of Appeals:

• Mortgage foreclosure for residential properties and foreclosure of right to redeem residential property after tax sale pending in the Circuit Court shall be immediately stayed.
  
• Residential eviction matter pending in the District Court and all pending residential eviction orders shall be immediately stayed.
  
• New foreclosure of residential properties, foreclosure of right to redeem after tax sale and residential evictions shall be stayed upon filing.
  

For the full text of the order visit https://www.courts.state.md.us/sites/default/files/admin-orders/20200318suspensionofforeclosuresevictions.pdf

Protect yourself financially from the impact of the coronavirus

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Author:  Consumer Financial Protection Bureau

Federal, state, and local governments are working to respond to the growing public health threat of coronavirus, or COVID-19
As communities across the country are dealing with an increase in the number of reported cases, many areas may be impacted by the temporary closure of businesses, schools and other public facilities or events, and in some cases, quarantines. While these actions are necessary steps to help reduce exposures, it may bring financial uncertainty for many people who could experience a loss of income due to illness or workplace closures.

As you plan for the potential impact of the coronavirus, there are a number of steps that you can take to help protect yourself or a loved one financially, both in the short and long term.
Keep reading for steps to take in the following situations:

• You have trouble paying your bills or meeting other financial obligations
• You experience a loss of income
• You think you may be targeted by a scammer

Steps to take if you have trouble paying your bills or meeting other financial obligationsIf you have trouble paying your bills, or loans, or paying on time, there may be a number of options to help, especially if you reach out early to your lenders or creditors.
Contact your lenders and loan servicersIf you’re not able to pay your bills on time, contact your lenders and servicers to let them know about your situation. Being behind on your payments can have a lasting impact on your credit. The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their community needs.
Credit card companies and lenders may be able to offer you a number of options to help you. This could include waiving certain fees like ATM, overpayments, and late fees, as well as allowing you to delay, adjust, or skip some payments.
When contacting your lenders, be prepared to explain:

• Your situation
• How much you can afford to pay
• When you’re likely to be able to restart regular payments
• In the case of mortgages, be prepared to discuss your income, expenses and assets

If you are having trouble paying our auto loan payments your lender may have options that will help. Our tips include changing the date of your payment, requesting a payment plan, and asking for a payment extension.
If you have student loans, you may qualify for a delayed or reduced payment program. Just remember, even though you don’t need to make payments now, interest will continue to accrue, and you will have to make up these amounts eventually. Contact your student loan servicer to find out more about your options. If you have a federal student loan, also ask your servicer about alternative repayment plans
.
Work with housing and credit counselors to understand your optionsThese trained professionals provide advice for little or no cost, and they will work with you to discuss your situation, evaluate options, and even help you negotiate with your lenders and servicers.

• HUD-Approved Housing Counselors. The U.S. Department of Housing and Urban Development (HUD)-approved housing counselors can discuss options with you if you’re having trouble paying your mortgage loan or reverse mortgage loan. This may also include forbearance or a modified payment program.
• Credit Counselors. Reputable credit counseling organizations are generally non-profit organizations that can advise you on your money and debts, and help you with a budget. Some may also help you negotiate with creditors. There are specific questions to ask to help you find a credit counseling organization to work with.

Warning: If you’re considering working with a debt settlement company to address your debts, be skeptical of any company that promises to do it for an upfront fee.
Contact debt collectorsIf you currently have a debt in collections, you can work with collectors to identify a realistic repayment plan. The Bureau offers a number of resources for contacting and negotiating with debt collection companies.
Check your credit reportsIf you’re working with lenders on payment assistance programs or forbearance, routinely check your credit reports to make sure the statements are accurate and that any delinquencies have not been improperly reported. Your credit reports and scores play an important role in your future financial opportunities.

What to do if you lose your incomeState and local governments vary in the programs and offerings to help those financially impacted by the coronavirus.
You can look to your state’s unemployment policies

to identify current options for benefits. Your state's public health office may also have information.
Older adults may be impacted by the coronavirus and quarantine procedures in different ways than the general public. There may be government benefits available to older adults who need financial help. Visit benefitscheckup.org for more information and to see if you qualify for any state or local assistance.

Be aware of potential scam attemptsScammers look for opportunities to take advantage of the vulnerable, especially during times of emergencies or natural disasters. Be cautious of emails, texts, or social media posts that may be selling fake products or information about emerging coronavirus cases.
The Federal Trade Commission has tips to protect yourself from possible coronavirus-related scams
The FTC and the Food and Drug Administration have also cautioned consumers to be on the look-out for sellers of unapproved and misbranded products, claiming they can treat or prevent coronavirus.
Learn more about how to prevent, recognize, and report fraud and scams.

Protecting Older AdultsScammers often target older adults because they may have more assets or regular income in the form of retirement benefits or savings and because they’re often more polite and trusting than other age groups. As older adults are at a higher risk
for serious illness they may also be isolating themselves.
Social isolation is already an issue for older adults and can lead to a host of issues, including an increased likelihood of falling for scams due to a need to connect to others. This issue could grow in response to virus prevention tactics like social distancing and quarantines. Phone calls and video chats can help older adults and their families connect during this period where health officials encourage limiting contact.
Older adults, as well as their family members should be aware of common types of scams, as well as how to prevent and report them. Our Money Smart for Older Adults Resource guide can help.
Need more help.  If you have a problem with a financial product or service, try reaching out to the company first. Companies can usually answer questions unique to your situation and more specific to the products and services they offer. We can also help you connect with the company if you have a complaint. You can submit online or by calling (855) 411-2372. Companies generally respond within 15 days. The company may contact you directly to confirm information provided in your complaint before it responds. In some cases, the company will let you know their response is in progress and will provide a final response within 60 days.

Editorial note: This blog was originally posted on March 13, 2020 and has been updated to reflect new information.


For the full text of the article visit https://www.consumerfinance.gov/about-us/blog/protect-yourself-financially-from-impact-of-coronavirus/

Author:  Ben Lane     www.housingwire.com

Cities and states across the country are already suspending evictions and foreclosures in response to the spread of the coronavirus, but the federal government is taking the biggest step so far to keep people in their homes.

President Donald Trump announced Wednesday that the Department of Housing and Urban Development is suspending all foreclosures and evictions until the end of April.
Beyond that, the Federal Housing Finance Agency announced Wednesday that it is directing Fannie Mae and Freddie Mac to suspend foreclosures and evictions for “at least 60 days.” That would mean the moratorium lasts through mid-May, at least.
According to the FHFA, the foreclosure and eviction suspension applies to homeowners whose single-family mortgage is backed by either Fannie Mae or Freddie Mac.
“This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency,” FHFA Director Mark Calabria said in a statement.
Given that Fannie and Freddie are the largest mortgage financers in the country, the move is a sizable one.
“As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage, should reach out to their mortgage servicers as soon as possible,” Calabria added. “The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”
Earlier this month, the FHFA and HUD reminded mortgage servicers of their options for borrowers affected by the COVID-19 outbreak.
Included among those options is payment forbearance, which would allow affected borrowers to suspend their mortgage payment for up to 12 months due to hardship caused by the coronavirus.
As for HUD, Trump made the announcement during a Wednesday press conference discussing the growing impact of COVID-19.
“The Department of Housing and Urban Development is providing immediate relief to renters and homeowners by suspending all foreclosures and evictions until the end of April,” Trump said. “So, we’re working very closely with Dr. Ben Carson and everybody from HUD.”
JUST IN: Pres. Trump says HUD will be "suspending all foreclosures and evictions until the end of April" amid coronavirus pandemic. https://t.co/piDsmnkG0y pic.twitter.com/6cnBMYDqrz
— ABC News (@ABC) March 18, 2020The move comes at a time when civil courts and other housing authorities are shutting down in the wake of virus, so it’s unlikely that many jurisdictions would even be able to process evictions and foreclosures at this point.
Foreclosure and eviction moratoriums are not a new step, but the government usually puts them in place in areas that suffered a natural disaster. But the spread of the virus has necessitated a nationwide moratorium.
HUD has not made an official announcement on the policy to this point, but this article will be updated when HUD makes it official.
In its announcement, the FHFA said that it will “continue monitor the coronavirus situation and update policies as needed.”

For full text of article visit https://www.housingwire.com/articles/fannie-mae-freddie-mac-hud-suspending-all-foreclosures-and-evictions/

Consumer Financial Protection Bureau
Office of Communications
www.consumerfinance.gov


WASHINGTON, D.C. – The Consumer Financial Protection Bureau (Bureau) today announced a settlement with BSI Financial Services (BSI), a mortgage servicer headquartered in Irving, Texas. BSI Financial Services is the operating name for Servis One, Inc.
The Bureau found that BSI violated the Consumer Financial Protection Act of 2010, the Real Estate Settlement Procedures Act, or the Truth in Lending Act by:
• Handling mortgage servicing transfers with incomplete or inaccurate loss mitigation information. This resulted in failures to recognize transferred mortgage loans with pending loss mitigation applications, in-process loan modifications, and permanent loan modifications;
• Handling mortgage servicing transfers with incomplete or inaccurate escrow information resulting in untimely escrow disbursements;
• Inadequately overseeing service providers, resulting in untimely escrow disbursements to pay borrowers’ property taxes and homeowners’ insurance premiums;
• Failing to promptly enter interest rate adjustment loan data for adjustable rate mortgage (ARM) loans into its servicing system, resulting in BSI sending monthly statements to consumers that sought to collect inaccurate principal and interest payments; and
• Maintaining an inadequate document management system that prevented BSI’s personnel or consumers from readily obtaining accurate information about mortgage loans.
Under the terms of the consent order, BSI must, among other provisions, pay a civil money penalty of $200,000 and pay restitution estimated to be at least $36,500. It must also establish and maintain a comprehensive data integrity program to ensure the accuracy, integrity, and completeness of the data for loans that it services, and implement an information technology plan to ensure BSI’s systems are appropriate give the nature, size, complexity, and scope of BSI’s operations.

The consent order is available at:

https://files.consumerfinance.gov/f/documents/cfpb_servis-one-inc-BSI-financial-services_consent-order_2019-05.pdf