April 23, 2020

Cortez Masto and Banking Committee Colleagues Urge Major Mortgage Servicers to Immediately Notify Eligible Homeowners of Protections Available Through CARES Act

Las Vegas, Nev. – U.S. Senator Catherine Cortez Masto (D-Nev.) joined Senators Elizabeth Warren (D-Mass.) and Senator Sherrod Brown (D-Ohio) on a letter to major mortgage servicers – 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 – urging them to immediately notify eligible homeowners of the foreclosure and forbearance protections available to homeowners experiencing a financial hardship included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

"As a servicer for single-family home mortgages, you have information about whether these loans are owned, insured, or guaranteed by a federal agency or backed by Fannie Mae or Freddie Mac and therefore eligible for protections provided by the CARES Act – information that may not be readily available or known to families who are struggling during this economic downturn and need these protections to stay in their home," the lawmakers wrote.

The CARES Act provides mortgage relief for eligible single-family borrowers with federally backed residential mortgages. It prohibits a lender or loan servicer from foreclosing on an eligible homeowner for a period of no less than 60 days, beginning March 18, 2020. And it gives single-family homeowners who are facing hardship due to the pandemic the right to up to 360 days of mortgage forbearance – essentially allowing them to hit pause on their mortgage payments during the coronavirus disease 2019 (COVID-19) outbreak and to make up those payments later. But homeowners who are experiencing a hardship must request mortgage forbearance to receive relief, and early reports suggest that servicer customer service lines are backed up, wait times are extensive, and homeowners may receive contradictory or false information once they reach someone. 

"To address these concerns, it is incumbent that your company do your part to affirmatively and accurately inform consumers of their ability to request forbearance under the CARES Act if they are facing hardship, and to ensure that families who need assistance and are unable to pay their mortgage because of COVID-19-related financial hardship are able to remain in their homes," wrote the lawmakers. "Homeowners face an unprecedented public health and economic emergency, and must have guaranteed, easy access to the protections provided to them by the CARES Act if they need them."

Full text of the letters can be found here.