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e COVID-19 pandemic has thrust the world into an unimaginably
difficult situation. ough authors of science fiction may try, no one could
have fully anticipated the scale and speed with which the pandemic would
impact the economy. For mortgage lenders and servicers, the pandemic will
prove to be a test of business continuity planning while managing processes
and regulatory changes in real time, all while maintaining fairness and
compliance across all aspects of day-to-day operations.
e CARES Act (Pub. L. No. 116-
136) was enacted on March 27, 2020, to
provide financial assistance and other types
of relief as the negative economic impact of
the COVID-19 pandemic set in across the
country. e consumer finance provisions under
Title IV of the Act directly address helping
Americans struggling to make mortgage
payments due to the economic slowdown
caused by the pandemic. ese provisions
cover "federally-backed mortgage loans,"
which are defined under the Act as any loan
that is secured by a first or subordinate lien on
residential real property designed principally
for the occupancy of from one-to-four families
that is:
ยป insured by the Federal Housing
Administration or under the National
Housing Act;
IS YOUR
PROGRAM
CARES ACT
COMPLIANT?
The industry must maintain business continuity planning while
managing processes and regulatory changes in real time.
Feature By: Thomas Grundy
