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62 Feature By: Matthew Tully With new CFPB leadership ramping up, a roughly even Democrat/Republican Senate, and COVID-19 housing relief policies expiring in June (as of now), mortgage lenders and servicers must be prepared for anything. ey must also be able to act on real-time regulatory changes while maintaining full compliance and seamless customer care for strong and struggling borrowers. Below, we cover hot policy topics and how to navigate it all in real-time. LATEST BIDEN FORBEARANCE POLICY CHANGES In late February, the Biden administration announced several updates to CARES Act forbearance and foreclosure programs for struggling borrowers as the pandemic slows economic recovery, including: 1. An additional six months of forbearance now available in two three-month increments through June 30 2. Foreclosure moratorium extended through June 30 3. New forbearance requests allowed through June 30 After previously extending the ban on foreclosures for homeowners with federally backed mortgages to March 31, President Biden further extended the foreclosure moratorium and expanded forbearance access. is gives homeowners more time to recover as vaccine distribution speeds up and a tiny pinprick of light at the end of the COVID-19 tunnel becomes visible. POLICY IMPLICATIONS AND EXPECTATIONS FOR 2021 ese updates out of the Biden administration are nothing surprising; they are more intended to buy time than anything. e most interesting observation to be had from this policy update is that the Biden administration has essentially said, "We've got this. Struggling homeowners need help, and we don't need Congress to get that done." Whether people realize it or not, it seems the Biden administration has thrown in the towel when it comes to relying on Congress to pass meaningful legislation regarding servicing requirements or new borrower protections. We are in a post-CARES Act world where the CARES Act set the foundation for forbearance, and now it's up to agencies and investors to carry homeowners through the turmoil. As for what to expect in the coming months, there have been rumblings about an 62 PREPPING FOR REGULATORY CLIMATE CHANGE IN 2021 With a new president and incoming policy shifts, here's how mortgage servicers should be preparing and prioritizing.