Joint Statement: Mortgage Servicing, COVID-19, CARES Act

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The National Credit Union Administration (NCUA) issued a letter to federally insured credit unions announcing it has jointly released with other federal regulatory agencies, and in conjunction with state bank and credit union regulators, a statement to communicate the agencies’ supervisory and enforcement approach to mortgage servicers as risk associated with the COVID-19 pandemic continues to change.

The joint statement announces indicates that while the COVID-19 pandemic continues to affect consumers and mortgage servicers, the agencies believe the temporary supervisory and enforcement flexibility described in the April 3, 2020, Joint Statement on Supervisory and Enforcement Practices Regarding the Mortgage Servicing Rules in Response to the COVID-19 Emergency and the CARES Act (April 2020 Joint Statement) is no longer necessary.

Accordingly, this statement informs servicers that the temporary flexibility announced in the April 2020 Joint Statement no longer applies. Instead, the agencies will apply their respective supervisory and enforcement authorities, where appropriate, to address any noncompliance or violations of the Regulation X mortgage servicing rules that occur after the date of issuance of the statement.

The NCUA recognizes the ongoing challenges faced by mortgage servicers and their efforts to assist members affected by the ongoing COVID-19 pandemic. The NCUA encourages servicers to continue working with their borrowers who may be experiencing financial difficulty.

Read the statement here.

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