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Rhode Island courts to recommence eviction proceedings on June 2, 2020
On May 20, State of Rhode Island District Court issued Administrative Order 2020-02, announcing that it would recommence adjudicating eviction matters on June 2, and detailing a set of temporary practices and protocols for eviction matters. Similarly, on May 19, the State of Rhode Island Department of Business Regulation issued Certified Constables Bulletin 2020-1.2, noting that certified constables should conduct service of process and executions regarding eviction at a time and in a manner specified by the court.
Washington state issues Phase 2 guidance for real estate industry
On May 19, Washington issued guidelines for the real estate industry during Phase 2 of the state’s reopening plan. Among other things, the guidelines prohibit in-person meetings with customers except when necessary to view a property or sign documents and limit attendance at on-site activities—such as such as appraisals, viewings, or walkthroughs — to three people.
Pennsylvania authorizes real estate businesses to commence in-person operations
On May 19, the Pennsylvania governor issued a revised executive order permitting all businesses in the real estate industry to commence in-person operations, and the Department of Health made corresponding revisions to previous orders to implement the change. Concurrently, the Pennsylvania Department of State issued guidance to the real estate industry, which contains requirements for conducting in-person operations in a manner that protects the health of customers and employees.
Fannie and Freddie: Borrowers eligible for refinance or purchase while in forbearance
On May 19, the FHFA announced that Fannie Mae and Freddie Mac issued temporary guidance that would allow borrowers who are in forbearance, or have recently ended forbearance, to be eligible to refinance or purchase a new home. According to Fannie Mae Lender Letter LL-2020-03 and Freddie Mac Bulletin 2020-17, borrowers are eligible to purchase a new home or refinance their mortgage if they are current on their mortgage—defined as having “made all mortgage payments due in the month prior to the note date of the new loan transaction by no later than the last business day of that month”—or if the mortgage is currently in a loss mitigation solution (the borrower must have made at least three timely payments as of the note date of the new transaction). Lenders are required to apply the guidance to loans with application dates on or after June 2, but may apply them immediately.
On the same day, Fannie Mae also issued an update to LL-2020-06, which extends the effective date for eligible loans in forbearance due to a Covid-19 hardship to June 30 with delivery to Fannie Mae by August 31.
Nevada Dept. of Business and Industry extends work from home guidance
On May 18, the Nevada Department of Business of Industry, Division of Mortgage Lending extended its provisional guidance allowing licensed mortgage loan originators to work from home (previously covered here) until August 31, 2020.
CFPB, CSBS issue consumer guide on CARES Act mortgage relief option
On May 15, the CFPB and Conference of State Bank Supervisors jointly issued a Consumer Relief Guide to provide information to homeowners with federally-backed mortgage loans regarding their rights to relief under the CARES Act. The Guide outlines steps for requesting forbearance and provides additional resources for borrowers who need assistance when understanding their options or working with their mortgage servicers. The Bureau also refers borrowers to its centralized webpage, which covers consumer financial resources for the Covid-19 pandemic (covered by InfoBytes here), as well as its joint housing assistance website launched in coordination with the Federal Housing Finance Agency and the Department of Housing and Urban Development (covered by InfoBytes here).
Vermont governor signs act imposing moratorium on ejectment and foreclosure actions during Covid-19
On May 14, the Vermont governor signed S.B. 333, which imposes a moratorium on ejectment and foreclosure actions until 30 days after the governor terminates the Covid-19 state of emergency. While a residential mortgage lender may commence a foreclosure action, the court must stay the action as of the date of filing until the end of the emergency period. The act also places limitations on writs of possession not yet issued as well as writs of possession already issued. The act took effect immediately upon passage.
Ginnie Mae issues APM on treatment of mortgage delinquency ratios for issuers
On May 14, Ginnie Mae issued APM 20-06 on the treatment of mortgage delinquency ratios for users affected by Covid-19. Under the Mortgage Backed Securities Guide, an issuer that fails to maintain delinquency rates below certain specified threshold levels may be subject to sanctions. Recognizing that Covid-19 related hardships may cause issuers to experience delinquency rates that exceed the maximum thresholds, effective immediately, Ginnie Mae will exclude any new issuer delinquencies occurring on or after April 2020 when calculating the delinquency ratios. This exclusion will automatically apply to issuers that had delinquency rates below the applicable thresholds as reflected by their April 2020 investor accounting report, reflecting March 2020 servicing data. Issuers that were not compliant with these provisions as of their April 2020 report must contact their Account Executive to determine their eligibility for this exclusion. The exemptions and delinquent loan exclusions automatically expire on December 31, 2020, unless rescinded earlier or extended by Ginnie Mae, or the end of the national emergency, whichever comes earlier.
Michigan prohibits removal or exclusion of tenant or mobile home owner from their home
On May 14, the Michigan governor issued an executive order temporarily prohibiting the entry to premises to remove or exclude a tenant or mobile home owner from their home, except for certain limited reasons. While the executive order does not prohibit a landlord or vendor from receiving payment or making a demand for rent or executory contract payment, such a demand may not include a threat of possession or forfeiture based on nonpayment. Officers also may not serve process requiring forfeiture of leased residential premises or residential premises held under a forfeited executory contract. The prohibitions are effective immediately and will continue until June 11, 2020, at 11:59 p.m. Further, until 30 days after any restrictions on eviction in the executive order expire, any statutory limits on the Michigan courts to adjourn proceedings, toll redemption periods or limitations periods, or extend any deadlines, are suspended.
FHA issues mortgagee letter extending guidance on employment reverification and appraisals
On May 14, the FHA issued Mortgage Letter 2020-14, which extends the effective period of the guidance in Mortgagee Letter 2020-05 allowing for flexibility relating to employment reverification and appraisal protocols for FHA single family programs affected by Covid-19 until June 30.