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Massachusetts introduces bill to halt evictions and foreclosures
On March 16, the Massachusetts legislature introduced a bill that would place a moratorium on evictions and foreclosures as long as the governor’s emergency declaration for the Covid-19 outbreak is active.
AARMR urges waiving of certain fees and charges
On March 17, the American Association of Residential Mortgage Regulators (AARMR) issued a statement encouraging mortgage lenders and servicers to take steps to “mitigate the impact to consumers of actions taken in response to Covid-19.” For lenders, the AARMR suggests steps such as waiving rate lock extension fees if an application is delayed for reasons beyond an applicant’s control, or refraining from closing an application due to incompleteness if an applicant is having difficulty gathering required documents. For servicers, the AARMR suggested waiving certain late charges (if permitted), offering forbearance plans or other deferment options, and generally ensuring that all staff are aware of available options and are proactive in assisting borrowers with potential delinquent payments. The AARMR also encourages member agencies to consider the impact of Covid-19 in their dealings with brokers, lenders, servicers, and MLOs.
New Hampshire Governor temporarily prohibits foreclosures
On March 17, New Hampshire Governor Christopher Sununu issued Emergency Order #4, which temporarily prohibits judicial and non-judicial foreclosures while the state of emergency related to the Covid-19 outbreak is active.
North Carolina court office postpones foreclosures and other civil proceedings
On March 15, the North Carolina Administrative Office of the Courts and Chief Justice Beasley issued a memorandum implementing a 30-day postponement (until April 14) on foreclosures and other civil proceedings, subject to limited exceptions.
Indiana governor calls for moratorium on residential foreclosures and evictions
On March 19, Indiana Governor Eric Holcomb issued an executive order calling for a moratorium on evictions and foreclosures of residential real estate. While the action does not absolve individuals of their obligations to pay their rent or mortgage, it does halt foreclosure and eviction proceedings until the state of emergency is lifted. The order also suspends any other statutes or rules connected to foreclosure and eviction proceedings.
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.
Idaho amends requirements for mortgage lenders
On March 11, the Idaho governor signed HB 401, which, among other things, amends the definition of “mortgage lending activities” to include residential mortgage servicing and grants temporary authority to unlicensed individuals to originate loans if they are employed by a licensed broker or lender and meet additional criteria. HB 401 also eliminates certain prohibited practices. The amendments take effect July 1.
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.
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.