The Department of Housing and Urban Development issued a Mortgagee Letter on April 1 with guidance spelling out how it will implement one of the key provisions of the CARES Act. The Mortgagee Letter spells out special loss mitigation options that mortgagees are required to offer to borrowers on any Federal Housing Administration Title II
On April 3, Maryland Governor Lawrence J. Hogan, Jr. issued “Executive Order No. 20-04-03-01, Amending and Restating the Order Dated March 16, 2020 Temporarily Prohibiting Evictions of Tenants Suffering Substantial Loss of Income Due to COVID-19, and Additionally Prohibiting Certain Repossessions, Stopping Initiation of Residential Mortgage Foreclosures, Prohibiting Commercial Evictions, and Allowing Suspension of Certain
On April 6, the California Judicial Council, which is the policymaking body of the California court system, adopted 11 emergency rules in light of the coronavirus (“COVID-19”) pandemic.
Emergency Rule 2 suspends all judicial foreclosures, including actions for deficiency judgments. All judicial foreclosures are stayed and the statute of limitations is tolled until 90 days
On April 1, the Consumer Financial Protection Bureau issued a consent order against Cottonwood Financial, Ltd., a short-term, small dollar lender located in Texas. After reviewing the lender’s installment lending, payday lending, title lending, marketing, collections, and furnishing practices, the CFPB identified a number of violations, including those under the Fair Credit Reporting Act, 15
On April 3, the West Virginia Supreme Court of Appeals issued another emergency order extending court deadlines. A press release regarding the order can be found here. The Court’s new order delays all court deadlines for matters scheduled to occur during the emergency period between March 23, 2020 and May 1, 2020 to May
On April 3, Nevada released new debt collection guidance that clarified existing emergency regulations implemented in response to the coronavirus (“COVID-19”) outbreak. The Deputy Commissioner of the Nevada Department of Business & Industry recently provided some clarification concerning the Department’s March 20 notice to the collection industry.
The Department’s prior notice deemed collection agencies non-essential
In a published opinion that should be advantageous to foreclosing parties, the Supreme Court of Virginia found that if a borrower cannot plead that he or she could have cured a mortgage loan default, then a foreclosure sale is “inevitable” and alleged defects in a notice of default cannot support a claim for rescission of
On March 31, the Consumer Financial Protection Bureau (“the Bureau”) published an online guide (available here) for consumers seeking financial relief options for mortgage and rent payments in light of the unfolding coronavirus (“COVID-19”) pandemic, with a particular focus on the new federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). The guide
New Jersey Gov. Phillip Murphy announced on March 28 that homeowners whose finances have been affected by the coronavirus (“COVID-19”) would get a 90-day reprieve on their mortgage payments.
According to the announcement, lenders must waive late fees and other expenses that a borrower would incur due to the grace period.
Overview
President Trump today signed into law H.R. 748, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2 trillion relief measure. Title IV, the economic stabilization portion of the CARES Act, contains three sections which dramatically affect businesses in the consumer financial services space. These sections include a foreclosure moratorium on federally-related