Dear Boards of Directors and Chief Executive Officers:
Five federal financial institution regulatory agencies, in conjunction with the state bank and credit union regulators, are jointly issuing the enclosed statement to communicate the agencies’ supervisory and enforcement approach to mortgage servicers as risks associated with the COVID-19 pandemic continue to change.1
The joint statement announces that while the COVID-19 pandemic continues to affect consumers and mortgage servicers, the agencies believe the temporary supervisory and enforcement flexibility described in the April 3, 2020, Joint Statement on Supervisory and Enforcement Practices Regarding the Mortgage Servicing Rules in Response to the COVID-19 Emergency and the CARES Act (opens new window) (April 2020 Joint Statement) is no longer necessary.
Accordingly, this statement informs servicers that the temporary flexibility announced in the April 2020 Joint Statement no longer applies. Instead, the agencies will apply their respective supervisory and enforcement authorities, where appropriate, to address any noncompliance or violations of the Regulation X mortgage servicing rules that occur after the date of issuance of the statement.2
The NCUA recognizes the ongoing challenges faced by mortgage servicers and their efforts to assist members affected by the ongoing COVID-19 pandemic. The NCUA encourages servicers to continue working with their borrowers who may be experiencing financial difficulty.
Please contact your NCUA Regional Office or state supervisory authority if you have any questions about this important topic.
Todd M. Harper
1 The agencies are the Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency, the National Credit Union Administration, and the Consumer Financial Protection Bureau.
2 This includes the Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X (86 FR 34848), which became effective on August 31, 2021. Though the temporary supervisory and enforcement flexibility announced in the April 2020 Joint Statement no longer applies, guidance in the April 2020 Joint Statement generally explaining the application of the CARES Act and interaction with the Regulation X mortgage servicing rules in effect at that time remain in place.