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Illinois issues executive order regarding evictions
On April 23, the Illinois governor issued an executive order prohibiting residential evictions, with certain limited exceptions. Law enforcement officers in Illinois are also instructed to cease enforcement of orders of eviction for certain non-residential premises. The executive order does not relieve an individual or entity of an obligation to pay rent or comply with any other obligation in the lease or rental agreement. The executive order will remain in effect for the duration of the gubernatorial disaster proclamations.
New Jersey regulator extends license application deadlines
On April 23, the New Jersey Department of Banking and Insurance extended the deadline for license and registration applications under New Jersey’s Mortgage Servicers Licensing Act to June 12, 2020. Persons required to seek licensure under the act include entities that are in the business of servicing residential mortgage loans, and which are not already licensed as residential mortgage lenders and entities licensed as residential mortgage lenders or correspondent residential mortgage lenders conducting business in New Jersey.
Fannie Mae issues a multifamily investor update regarding Covid-19
On April 23, Fannie Mae announced that it has published a list on DUS Disclose (MBS Reports section) that identifies MBS for which an underlying loan is in a Covid-19-related forbearance period. Fannie Mae will update the Multifamily MBS Covid-19 Forbearance List, which includes the pool number, CUSIP, and loan number, on a weekly basis. Investors are advised that the list will not include loans in a forbearance period for reasons other than Covid-19.
Virginia legislature approves foreclosure relief for residential homeowners and renters
On April 22, the Virginia state legislature reenrolled HB 340, which provides foreclosure relief to residents affected by the Covid-19 crisis. The reenrolled bill expands protections previously extended to federal workers furloughed by a government shutdown to all residents during the pandemic, including a 30-day stay on foreclosure proceedings for owners of residential housing and a 60-day stay on detainers for nonpayment of rent.
Texas agencies issue emergency guidance for home equity lenders
On April 22, the Texas Department of Banking, Department of Savings and Mortgage Lending, Office of Consumer Credit and Credit Union Department issued revised home equity lending guidance related to making new loans or adjusting existing loans to facilitate recovery efforts. The agencies encouraged lenders to work with borrowers to assist recovery while providing guidance on how lenders can ensure they maintain a valid home equity lien.
FHFA: Fannie, Freddie to temporarily buy mortgages in forbearance due to Covid-19
On April 22, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (GSEs) will purchase “certain single-family mortgages in forbearance that meet specific eligibility criteria” for a limited period in an effort to provide liquidity to ensure continued lending. Current policies dictate that the GSEs do not purchase loans that are in forbearance; however, due to the economic effects of Covid-19, FHFA will begin allowing the GSEs to buy certain mortgages that enter forbearance within the first month after loan closing, prior to delivery to the GSEs. The temporary selling requirements in Freddie Mac Bulletin 2020-12 allow lenders to sell to the GSE mortgages in forbearance only on mortgages for home purchases or “no cash-out” mortgage refinances. Further, the mortgages must have note dates between February 1, 2020 and May 31, 2020, the dates of settlement must be after May 1, and the mortgages must not be more than 30 days delinquent. Fannie Mae Lender Letter 2020-06 follows most of the same guidelines provided in the Freddie Mac bulletin, but Fannie Mae will also buy mortgages for limited cash-out refinances. To limit losses, the GSEs will charge sellers loan-level price adjustments of 5 percent for loans to first-time homebuyers, and 7 percent for all others.
Massachusetts enacts legislation imposing moratorium on certain evictions and foreclosures and requiring forbearance upon request
On April 20, the governor of Massachusetts signed legislation imposing a moratorium on certain eviction and foreclosure proceedings for the earlier of 120 days from the enactment of the legislation or 45 days after the state of emergency. In addition, the bill requires a creditor to grant a forbearance to a mortgagor that submits a request and affirms that the mortgagor has experienced a financial impact from Covid-19. Any payment subject to the forbearance must be added to the end of the term, unless otherwise agreed to. The legislation also prohibits a mortgagee or landlord from furnishing negative mortgage payment information or rental payment data to a consumer reporting agency related to payments subject to the act.
Washington governor issues proclamation extending eviction relief
On April 16, the Washington governor issued a proclamation extending and amending Proclamation 20-05 (declaring a state of emergency) and related amendments, and amending Proclamation 20-19 (regarding evictions). Effective immediately and until June 4, 2020, landlords, property owners, and property managers of residential dwellings and commercial rental properties in Washington may not, among other things, evict a tenant, assess certain fees, or increase the rate of rent or the amount of any deposit, except in certain limited circumstances.
Maine issues executive order prohibiting certain evictions
On April 16, the governor of Maine issued an executive order prohibiting landlords and property owners from attempting to evict a tenant by means not authorized by law and prohibiting the serving of writs of possession upon tenants in certain circumstances. The executive order also extends the notice periods for evicting a tenant for nonpayment of rent where such late payment is due to loss of income caused by Covid-19. The order will expire 30 days after the termination of the Covid-19 state of emergency, unless amended or rescinded earlier.
Texas Office of Consumer Credit issues revised emergency bulletin for lenders
On April 16, the Texas Office of Consumer Credit issued a revised bulletin outlining emergency guidance for regulated lenders navigating the Covid-19 crisis. The guidelines: 1) extended due date for filing annual reports from May 1 to June 1; 2) encouraged lenders to work with consumers, including by working out modifications to assist with payments, waiving fees and charges, suspending charged-off accounts, and suspending repossessions of collateral or foreclosure of real property, among other things; 3) reminded lenders of legal requirements for using electronic signatures; and 4) permitted lenders to conduct regulated lending activity from unlicensed locations, subject to certain conditions.