Ballard Spahr

02Aug

While Foreclosure Moratorium Ended, FHFA, HUD, VA and USDA Extend Eviction Moratoria

August 2, 2021 Ballard Spahr Residential

Ballard Spahr LLP

The Centers for Disease Control and Prevention’s (CDC) eviction moratorium expired on July 31, 2021. Meanwhile, at President Biden’s request, the Acting Director of the Federal Housing Finance Agency, and the Secretaries of the U.S. Department of Agriculture (USDA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Treasury, and U.S. Department of Veterans Affairs (VA) announced the extension of their foreclosure-related eviction moratoria until September 30, 2021.

In Mortgagee Letter 2021-19, dated July 30, 2021, HUD advises that the extension of its foreclosure-related eviction moratorium applies to all FHA Title II single-family forward and Home Equity Conversion (reverse) mortgage loans, other than FHA loans secured by vacant or abandoned properties. HUD stated that it extended the foreclosure-related eviction moratorium to “avoid displacement of severely distressed borrowers” and “provide [b]orrowers additional time to access federal, state, or local housing stability resources or to consult with HUD-certified housing counselors.” HUD also advises that during the eviction moratorium, a lender or servicer may not initiate or continue with an eviction to acquire possession of a foreclosed property.

15Jan

CFPB issues statement on providing financial products and services to LEP consumers

January 15, 2021 Ballard Spahr Residential

In a development welcomed by industry members, the CFPB published today a “Statement Regarding the Provision of Financial Products and Services to Consumers with Limited English Proficiency.” The Statement is intended to provide “compliance principles and guidelines to inform and assist financial institutions in their decision making related to serving LEP consumers.”

The Statement is divided into two sections. One section contains “guiding principles for serving LEP consumers.” These principles consist of the following:

The Bureau encourages financial institutions to better serve LEP consumers while ensuring compliance with relevant federal, state, and other legal requirements.
Financial institutions that wish to implement pilot programs or other phased approaches for offering LEP-consumer-focused products can consider doing so consistent with the Statement’s guidelines.
Financial institutions can consider developing a variety of compliance approaches related to providing products and services to LEP consumers consistent with the Statement’s guidelines.
Financial institutions can mitigate certain compliance risks by providing LEP consumers with “clear and timely” disclosures in non-English languages describing the “extent and limits” of any language services provided throughout the product lifecycle.
Financial institutions may wish to consider extending credit pursuant to a legally compliant special purpose credit program to increase credit access for certain underserved LEP consumers.