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Regulators Urge Banks to Extend Covid Relief for Borrowers

Aug. 3, 2020, 10:20 PM

Banks should give struggling borrowers more time to repay their mortgages and other loan obligations as statutory forbearance periods expire, federal financial regulators said.

The Federal Financial Institutions Examination Council will view loan modifications and other voluntary accommodations by banks as “positive actions” as the coronavirus pandemic persists, the interagency group said in statement Monday.

A CARES Act moratorium on foreclosures and evictions for federally-backed home loans ends on Aug. 31. The coronavirus relief legislation enacted in March also allowed mortgage borrower to request payment forbearance for up to 180 days, with the option to extend for up to another ...