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Banking industry

Senators Urge Mortgage Servicers to Notify Homeowners of Available Foreclosure Protections

Strategic Insights

— 1 min read

United States Senators Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) led a letter to major mortgage servicers, urging them to immediately notify eligible homeowners of foreclosure and forbearance protections available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The lawmakers expressed concerns that servicer customer service lines are backed up, wait times are extensive, and homeowners may receive contradictory or false information once they reach someone.

Key Takeaways:

  • The CARES Act provides mortgage relief for eligible single-family borrowers with federally backed residential mortgages, prohibiting foreclosures for at least 60 days and giving homeowners up to 360 days of mortgage forbearance.
  • However, early reports suggest that servicer customer service lines are backed up, and homeowners may receive contradictory or false information once they reach someone.
  • The lawmakers urge mortgage servicers to affirmatively and accurately inform consumers of their ability to request forbearance under the CARES Act if they are facing hardship.
  • The senators believe that homeowners face an unprecedented public health and economic emergency and must have guaranteed, easy access to the protections provided by the CARES Act.
  • Senator Brown introduced legislation to provide mortgage forbearance and foreclosure protections and has vowed to continue fighting for additional housing protections.

Statistics:

  • The CARES Act provides protections for mortgage relief for eligible single-family borrowers with federally backed residential mortgages.
  • 60 days is the minimum period of protection from foreclosure provided by the CARES Act.
  • 360 days is the maximum duration of mortgage forbearance allowed under the CARES Act.
  • Several major mortgage servicers, including Wells Fargo, JPMorgan Chase, Mr. Cooper, Bank of America, PennyMac Loan Services, Quicken Loans, Freedom Mortgage, New Residential, Lakeview Loan Servicing, US Bank, and Truist, received the letter from the senators.

Sources:

  • "United States Senators Sherrod Brown (D-Ohio), Ranking Member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, and Elizabeth Warren (D-Mass.)"
  • Senate Banking, Housing & Urban Affairs Committee
  • Coronavirus Aid, Relief, and Economic Security (CARES) Act

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