Mortgage Servicing Post-Forbearance: Navigating Federal, State, and Agency Lending Requirements

A live 90-minute premium CLE video webinar with interactive Q&A


Thursday, February 11, 2021

1:00pm-2:30pm EST, 10:00am-11:30am PST

Early Registration Discount Deadline, Friday, January 15, 2021

or call 1-800-926-7926

This CLE webinar will provide legal guidance on transitioning from the current period of forbearance in the home mortgage market into the post-forbearance landscape. The panel will discuss how best to navigate federal, state, and investor/insurer requirements to determine servicers' options with regard to delinquent loans and how to implement them legally and efficiently.

Description

The March 2020 CARES Act requires servicers of federally backed single-family mortgages to provide forbearances to borrowers impacted by COVID-19. Some states also enacted forbearance requirements, and as of November 2020, about 3.6 million homeowners representing $751 billion in unpaid principal remained in forbearance plans. With increasing numbers of COVID-19 forbearances set to expire each month, mortgage servicers and their counsel must establish policies and procedures for handling such mortgages post-forbearance.

Federal and state forbearance requirements often do not dictate how servicers should handle unpaid principal after the forbearance period ends, so servicers must analyze a patchwork of federal, state, and investor/insurer requirements to determine what to offer and how to do it in compliance with applicable law. Reinstatement, a repayment plan, payment deferral, or an outright loan modification will depend on the financial condition of the borrower and other factors.

Investor/insurer requirements will play a critical role in the servicers' post-forbearance approach. FHA, Fannie Mae, and Freddie Mac have all prescribed payment deferral programs, but servicers must determine borrower eligibility, which can be difficult to manage. Servicers of GSE loans must also consider quality right party contact (QRPC) and loss mitigation hierarchy (i.e., waterfall) and must comply with loss mitigation requirements imposed under Regulation X.

Listen as our authoritative panel discusses servicing of single-family mortgages post-forbearance, focusing on the options available to servicers and borrowers and the regulatory framework that must be considered.

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Outline

  1. CARES Act and the current rules regarding forbearance for federally-backed single-family mortgages
  2. State laws regarding forbearance
  3. Options available to servicers post-forbearance
  4. Fannie Mae, Freddie Mac, and FHA payment deferral programs--eligible borrowers
  5. Federal and state regulatory framework
    1. QPRC and loss mitigation hierarchy (i.e., waterfall) requirements
    2. Regulation X and CFPB Interim Final Rule on COVID-19-related loss mitigation
    3. State regulations

Benefits

The panel will review these and other key issues:

  • What are the conditions to mortgage forbearance under the CARES Act, and when are current forbearance programs set to expire?
  • How should mortgage servicers proceed with delinquent loans after forbearance has terminated?
  • What are the Fannie Mae, Freddie Mac, and FHA requirements concerning payment deferral?
  • What are the regulatory issues that servicers must consider before proceeding with a post-forbearance loss mitigation solution?

Faculty

Bushby, Jason
Jason R. Bushby

Partner
Bradley Arant Boult Cummings

Mr. Bushby provides regulatory compliance, examination, enforcement, and litigation assistance to a range of financial...  |  Read More

Pipes, Gregory
Gregory B. Pipes

Attorney
Bradley Arant Boult Cummings

Mr. Pipes assists banks, mortgage originators and servers, and other financial service providers with examinations,...  |  Read More

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