InfoBytes Blog
Filter
Subscribe to our InfoBytes Blog weekly newsletter and other publications for news affecting the financial services industry.
Texas DMV issues waivers for titles
On March 16, the Texas Department of Motor Vehicles (DMV) issued a waiver of the time in which individuals must apply for title, and a waiver of the associated delinquent transfer penalty. The waiver is effective immediately and applies to any title application submitted between March 16 and 60 days after the DMV notifies the public that normal titling services have resumed.
Prometric closes testing centers
On March 17, Prometric announced that, effective March 18, Prometric Test Centers in the U.S. and Canada will be closed for 30 days. This directly impacts state MLO license applicants as the SAFE MLO test, which individuals must pass to obtain an MLO license, is administered by Prometric.
Two New Jersey counties suspend foreclosure sales and evictions
On March 16, the Sherriff’s Office of Passaic County in New Jersey issued an action suspending foreclosure sales and evictions enforcement during the Covid-19 state of emergency. On the same day, the Sherriff’s Office of Essex County Jersey issued a similar action suspending foreclosure sales and eviction enforcement actions indefinitely.
HUD implements foreclosure and eviction moratorium
On March 18, HUD announced that it would implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days and issued Mortgagee Letter 2020-04. The guidance applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) Mortgages, and directs mortgage servicers to: (i) halt all new foreclosure actions and suspend all foreclosure actions currently in process; and (ii) cease all evictions of persons from FHA-insured single-family properties.
FHFA directs Fannie and Freddie to suspend foreclosures and evictions due to Covid-19
On March 18, the FHFA announced that it has directed Fannie Mae and Freddie Mac to suspend foreclosures and evictions for at least 60 days due to the Covid-19 national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage.
Fannie Mae addresses Covid-19 impact
On March 16, Fannie Mae (FNMA) published a statement on its website addressing its internal business continuity and the procedures it has established to deal with the effects of Covid-19. The statement mentions that FNMA maintains an infectious disease plan and a crisis management team. It also provides assurances that FNMA is observing business continuity plans and following guidance from the Centers for Disease Control and Prevention, as well as taking measures to protect employees, including through remote work and social distancing. Additionally, FNMA sets forth a number of procedures established to deal with the impacts of Covid-19, including “[c]ommunicating with Single-Family lender customers about existing policies that outline options for potentially impacted borrowers.”
VA issues Covid-19 guidance
On March 16, the Department of Veterans Affairs (VA) released Circular 26-20-7, “Special Relief for those Potentially Impacted by COVID-19,” which provides guidance for veterans, lenders, servicers, and appraisers on the VA Home Loan Program in connection with the spread of Covid-19. Veterans are encouraged to call ahead for any in-person appointments with VA staff or with a lender, appraiser, or servicer regarding a home loan if the veteran may present a Covid-19 transmission risk. Additionally, the VA will permit lenders and servicers to offer relief to veterans impacted by the virus through (i) forbearance on guaranteed loan payments; (ii) waiver of late charges; and (iii) suspending credit bureau reporting. Appraisers are encouraged to continue business in accordance with Chapter 10 of the M26-7 Lender’s Handbook. As with the guidance for veterans, appraisers are also encouraged to determine if they present a Covid-19 transmission risk prior to face-to-face appointments, and then, as appropriate, to reschedule appointments or transfer the assignment to another appraiser. The announcement also urges appraisers to follow the Centers for Disease Control and Prevention’s recommendations to prevent the spread of Covid-19 when performing appraisals. The circular notes that the VA “is continuing with normal program operations” and will update information on the VA Home Loan Program as it is available.
New Mexico issues work from home guidance
On March 17, the New Mexico Regulation and Licensing Department issued temporary regulatory guidance regarding working from home due to Covid-19 concerns. The guidance permits New Mexico mortgage licensees and their staff to work from their home residence, which may not be licensed as a branch, provided certain requirements are met.
New York announces postponement of collection efforts for certain debts
On March 17, the governor and the attorney general of New York announced that, effective immediately, New York will temporarily postpone collection efforts on certain debts. Consumers with student loan debt and medical debt owed to the state will be receive at least a 30-day hiatus on payments—including a freeze on the accrual of interest on the debts—in order to allow them to deal with the effects of Covid-19. Debts must fit certain criteria in order to qualify for the debt payment freeze. Among other things, the criteria include (i) “[p]atients that owe medical debt due to the five state hospitals and the five state veterans' home[s]”; (ii) “[s]tudents that owe student debt due to State University of New York campuses”; and (iii) “[i]ndividual debtors, sole-proprietors, small business owners, and certain homeowners that owe debt relating to oil spill cleanup and removal costs, property damage, and breach of contract, as well as other fees owed to state agencies.” New Yorkers who have other types of debt that are owed to the state and who are referred to the Office of the Attorney General may apply for a temporary freeze on collection by submitting an application which can be found here.
Pennsylvania issues work from home guidance
The Pennsylvania Department of Banking and Securities states on its website that it will not take exception to licensees and registrants working from alternate site locations, whether licensed or not, only while the Commonwealth of Pennsylvania is under a Proclamation of Disaster Emergency.