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Regulators Ease Mortgage Servicer Requirements Ahead of Forbearance Wave (1)

April 3, 2020, 11:21 PMUpdated: April 3, 2020, 11:49 PM

Banks and others won’t be punished for missing some deadlines under mortgage servicing regulations as they rush to comply with payment forbearance requirements under the new coronavirus aid package, federal and state regulators said.

Because the CARES Act mandates that mortgage servicers provide borrowers facing hardship with a 180-day forbearance on payments, the industry will not face enforcement actions for missing communication deadlines and other requirements put in place after the 2008 financial crisis, the regulators said in a seven-page guidance issued late Friday.

The Consumer Financial Protection Bureau, the Federal Deposit Insurance Corp., the Federal Reserve, the Office of ...

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