Washington Department of Financial Institutions urges servicers to support mortgagors

State Issues Covid-19 Washington Mortgages

On March 20, the Washington Department of Financial Institutions issued guidance to Washington State regulated and exempt residential mortgage loan servicers regarding support for borrowers impacted by Covid-19. The guidance urges servicers to support adversely impacted mortgagors by, among other things, forbearing mortgage payments for 90 days from their due dates, refraining from reporting late payments to credit rating agencies for 90 days, offering mortgagors an additional 90-day grace period to complete loan modifications, waving late payment fees and online payment fees for 90 days, postponing foreclosures for 90 days, and proactively reaching out to mortgagors to explain the assistance being offered to mortgagors. Such services are also required to ensure that mortgagors do not experience a disruptions of services if the servicer closes its offices. The guidance notes that reasonable and prudent efforts to assist mortgagers will not be subject to examiner criticism.