In addition, if the claimant highlights a written notification of a request for leniency that indicates a deficiency in the borrower`s application that is curable (. For example, an incomplete application or missing information), the service provider: financial institutions will provide mortgage payments of up to 90 days to borrowers economically affected by COVID-19, in accordance with current guidelines. In addition, when the mortgage service provider issues a written notification denying a request for leniency, as required by the new law, and the notice indicates a curable deficiency (. B for example, an incomplete application), the service provider: for non-federal mortgages, the bill requires a service provider to „verify a solution in accordance with existing federal guidelines“ to comply with the law. If the service contract of a service provider or other authority does not allow it to offer an option in accordance with the current federal guidelines for these loans, it is not certain that the client`s verification of an option that it does not offer would be considered to be in compliance with the law. Nevertheless, a service provider may still be able to take the position that it does not violate this section of California law, provided that it also offers options in accordance with the contractual or other authority of the provider. In accordance with applicable guidelines, financial institutions do not report derogatory information (for example. B late payments) to credit agencies, but can declare an indulgence that usually does not only have a negative effect on a credit score. In particular, pure mortgages, which comply with the existing leniency provisions of Section 4022 of the CARES Act or which provide leniency for non-federal mortgages in a manner consistent with these CARE Act requirements, are deemed to be in compliance with the above termination requirement. On the other hand, the service provider is required to pass on the notification if it rejects an application for leniency, if it serves a mortgage not guaranteed by the Confederation, which meets the two conditions mentioned above. AB 3088 imposes new leniency requirements on mortgage service providers in the context of the COVID 19 pandemic (in addition to important protections for tenants in California, which go beyond this summary). Ab 1864 appointed, reorganized and gave new powers to the California Primary Financial Services Regulator to create a mini-CFPB, although many licensees were excluded from the new authority.
Governor Newsom came into force in 3088, which came into force immediately as a emergency and is expected to follow in the near future with AB 1864. In accordance with AB 3088, services must also comply with existing federal borrowing options guidelines after an indulgence related to COVID-19. Government-backed mortgage providers will be considered in accordance with this requirement if the service complies with the policy guidelines on borrower options according to an indulgence of Fannie Mae, Freddie Mac, FHA, VA or USDA on covid-19. Similarly, secured non-federal loan service providers are considered to be considered in accordance with the requirement to comply with existing federal guidelines when the service provider reviews a borrower for a solution consistent with the same existing federal guidelines. It`s a good idea to seek the help of a professional, as a . B of a licensed judicial administrator, who can explain the effects of the leniency agreement and guide you through these difficult times. A professional with the right expertise can help you draw up a plan to ensure that you can meet the terms of the agreement. You should also be able to make recommendations on the terms you can and should negotiate and help you find another lender if that is what is most useful in your circumstances.