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  • Agencies issue Hurricane Dorian guidance

    Federal Issues

    On August 29, Fannie Mae, Freddie Mac, and HUD issued disaster relief guidance related to Hurricane Dorian. Fannie Mae reminded servicers of available mortgage assistance options for homeowners impacted by the hurricane: (i) qualifying homeowners are eligible to stop making mortgage payments for up to 12 months without incurring late fees and without having delinquencies reported to the credit bureaus; (ii) servicers may immediately suspend or reduce mortgage payments for up to 90 days without any contact with homeowners believed to have been affected by a disaster; and (iii) foreclosures and other legal proceedings for homeowners believed to be impacted by a disaster are temporarily suspended. Freddie Mac similarly reminded servicers of these mortgage relief options.

    The same day, HUD released Mortgagee Letter ML 2019-14 (ML 2019-14), which updates Handbook 4000.1 and expands its “Disaster Standalone Partial Claim” loss mitigation option which “allow[s] borrowers in Presidentially Declared Major Disaster Areas (PDMDAs) with delinquent FHA-insured mortgages to bring their mortgages current without increasing their interest rates or principal and interest payments.” The mitigation option, introduced last year, “covers missed mortgage payments up to 30 percent of Unpaid Principal Balance” through an interest-free second loan on the mortgage without a required trial payment plan. The second loan will become payable only when the borrower sells the home or refinances. Additionally, the loss mitigation option will streamline income documentation and other requirements to expedite relief to eligible borrowers struggling to pay their mortgages while recovering from disasters.

    Separately on August 30, the OCC issued a proclamation permitting OCC-regulated institutions, to close offices affected by Hurricane Dorian’s severe weather conditions at their discretion “for as long as deemed necessary for bank operation or public safety.” In issuing the proclamation, the OCC noted that it expects that only those bank offices directly affected by potentially unsafe conditions will close and that they should make every effort to reopen as quickly as possible to address the banking needs of their customers. The proclamation directs institutions to OCC Bulletin 2012-28 for further guidance on natural disasters and other emergency conditions.

    Federal Issues Fannie Mae Freddie Mac Disaster Relief Mortgages Consumer Finance OCC HUD FHA

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  • VA encourages relief for Hurricane Barry-affected borrowers

    Federal Issues

    On July 30, the Department of Veterans Affairs (VA) issued Circular 26-19-21, encouraging mortgagees to provide relief for VA borrowers affected by Hurricane Barry on the Gulf Coast. Among other forms of assistance, the Circular encourages loan holders and servicers to (i) extend forbearances to borrowers in distress because of the severe storms and flooding; (ii) establish a 90-day moratorium from the disaster date on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend credit reporting. The Circular is effective until July 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

    Find continuing InfoBytes coverage on disaster relief guidance here.

    Federal Issues Disaster Relief Department of Veterans Affairs Consumer Finance Mortgages

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  • FDIC encourages relief for Missouri and Texas borrowers

    Federal Issues

    On July 26, the FDIC issued Financial Institution Letters FIL-44-2019 and FIL-45-2019 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Missouri and Texas affected by severe weather. FIL-44-2019 covers severe storms, tornadoes, and flooding causing significant property damage in areas of Missouri from April 29 through the present. FIL-45-2019 covers severe storms and flooding causing significant property damage in areas of Texas from June 24 to June 25. The regulatory guidance notes that certain areas in Texas and Missouri were designated federal disaster areas.

    The FDIC is encouraging institutions to consider, among other things, extending repayment terms, restructuring existing loans, or easing terms for new loans to borrowers affected by the severe weather. Additionally, the FDIC notes that institutions may receive favorable Community Reinvestment Act consideration for community development loans, investments, and services in support of disaster recovery.

    Find continuing InfoBytes coverage on disaster relief guidance here.

    Federal Issues Disaster Relief CRA Mortgages

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  • OCC allows institutions affected by severe flooding in Gulf Coast to temporarily close

    Federal Issues

    On July 12, the OCC issued a proclamation permitting OCC-regulated institutions, at their discretion, to close offices affected by severe weather along the Gulf Coast “for as long as deemed necessary for bank operation or public safety.” In issuing the proclamation, the OCC noted that only bank offices directly affected by potentially unsafe conditions should close and that institutions should make every effort to reopen as quickly as possible to address customers’ banking needs. The proclamation directs institutions to OCC Bulletin 2012-28 for further guidance on actions they should take in response to natural disasters and other emergency conditions.

    Find continuing InfoBytes coverage on disaster relief here.

    Federal Issues OCC Disaster Relief

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  • VA encourages relief for Arkansas borrowers

    Federal Issues

    On June 20, the Department of Veterans Affairs (VA) issued Circular 26-19-16, encouraging mortgagees to provide relief for VA borrowers impacted by severe storms and flooding in Arkansas. Among other forms of assistance, the Circular encourages loan holders and servicers to (i) extend forbearance to borrowers in distress because of the severe storms and flooding; (ii) establishes a 90-day moratorium from the disaster date on initiating new foreclosures on affected loans; (iii) waives late charges on affected loans; and (iv) suspends credit reporting. The Circular is effective until July 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

    Find continuing InfoBytes coverage on disaster relief guidance here.

    Federal Issues Department of Veterans Affairs Disaster Relief

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  • VA encourages loan holders to extend relief to Louisiana and Oklahoma borrowers

    Federal Issues

    On June 18, the Department of Veterans Affairs (VA) issued Circular 26-19-14 and Circular 26-19-15, encouraging relief for VA borrowers impacted by severe storms in Louisiana and Oklahoma. Among other things, the Circulars encourage loan holders to (i) extend forbearance to borrowers in distress because of the severe storms and flooding; (ii) establish a 90-day moratorium from the disaster date on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend credit reporting. The Circulars are effective until July 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

    Find continuing InfoBytes coverage on disaster relief guidance here.

    Federal Issues Department of Veterans Affairs Disaster Relief

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  • FDIC encourages release for Arkansas and South Dakota borrowers

    Federal Issues

    On June 17, the FDIC issued Financial Institution Letters FIL-32-2019 and FIL-33-2019 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Arkansas and South Dakota affected by severe weather. FIL-32-2019 covers severe storms and flooding caused significant property damage in areas of Arkansas from May 21 through the present and FIL-33-2019 covers severe winter storm, snowstorm, and flooding caused significant property damage in areas of South Dakota from March 13 through April 26.

    The FDIC is encouraging institutions to consider, among other things, extending repayment terms and restructuring existing loans to borrowers affected by the severe weather. Additionally, the FDIC notes that institutions may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.

    Find continuing InfoBytes coverage on disaster relief guidance here.

    Federal Issues FDIC Disaster Relief CRA Consumer Finance

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  • FDIC encourages relief for Oklahoma borrowers

    Federal Issues

    On June 10, the FDIC issued Financial Institution Letter FIL-30-2019 to provide regulatory relief to financial institutions and help facilitate recovery in areas of Oklahoma affected by severe weather from May 7 through the present. The FDIC is encouraging institutions to consider, among other things, extending repayment terms and restructuring existing loans to borrowers affected by the severe weather. Additionally, the FDIC notes that institutions may receive favorable Community Reinvestment Act (CRA) consideration for community development loans, investments, and services in support of disaster recovery.

    Find continuing InfoBytes coverage on disaster relief here.

     

    Federal Issues FDIC Disaster Relief CRA Consumer Finance

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  • OCC allows institutions affected by severe flooding in south central U.S. to temporarily close

    Federal Issues

    On May 28, the OCC issued a proclamation permitting OCC-regulated institutions, at their discretion, to close offices affected by severe flooding in the south central region of the U.S. “for as long as deemed necessary for bank operation or public safety.” In issuing the proclamation, the OCC noted that only bank offices directly affected by potentially unsafe conditions should close, and that institutions should make every effort to reopen as quickly as possible to address customers’ banking needs. The proclamation directs institutions to OCC Bulletin 2012-28 for further guidance on actions they should take in response to natural disasters and other emergency conditions.

    Find continuing InfoBytes coverage on disaster relief here.

    Federal Issues OCC Disaster Relief

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  • VA encourages loan holders to extend relief to Iowa borrowers

    Federal Issues

    On March 29, the Department of Veterans Affairs (VA) issued Circular 26-19-10, encouraging relief for VA borrowers impacted by severe storms and flooding in Iowa. Among other things, the Circular encourages loan holders to (i) extend forbearance to borrowers in distress because of the severe storms and flooding; (ii) establish a 90-day moratorium from the disaster date on initiating new foreclosures on affected loans; (iii) waive late charges on affected loans; and (iv) suspend credit reporting. The Circular is effective until April 1, 2020. Mortgage servicers and veteran borrowers are also encouraged to review the VA’s Guidance on Natural Disasters.

    Find continuing InfoBytes coverage on disaster relief here.

    Federal Issues Department of Veterans Affairs Disaster Relief Mortgages

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