Regulators Support CARES Act Forbearance by Offering Flexibility to Mortgage Servicers
The Coronavirus Aid, Relief and Economic Security (CARES) Act provides relief to many Americans, including those who can no longer make their mortgage payments. Mortgage forbearance does, however, impose additional burdens on mortgage servicers who need to ensure that such forbearance is properly granted in a timely manner. The regulatory agencies appear to understand this predicament and on April 3, 2020, issued a joint statement to provide some needed guidance.
This article explains the required forbearance available to mortgage borrowers under the CARES Act and provides information about the relief offered to financial institutions and mortgage servicers under the joint statement.