The District of Columbia Department of Insurance, Securities and Banking recently issued FAQs on the implementation of the COVID-19 Response Supplemental Emergency Amendment Act of 2020, as amended by the COVID-19 Supplemental Corrections Emergency Amendment Act of 2020 (the Act).
The Act, in part, provides for mortgage relief by “mortgage lenders,” defined to include, subject to limited exceptions, both mortgage lenders and mortgage servicers. Mortgage lenders making or holding commercial or residential mortgage loans must provide a deferment program that, at a minimum, grants a 90-day deferment period of mortgage payments, waives fees, and does not include reporting any derogatory information resulting from the deferral to a credit bureau.
The FAQs, among other things, address (i) the scope of the “mortgage lender” definition, (ii) application criteria and procedures for the deferment program, (iii) reporting requirements, (iv) the prohibition on requiring a lump sum payment from a borrower under the program, (v) accommodations to borrowers’ tenants, and (vi) record-keeping and compliance.
Specifically, the FAQs require covered entities to submit the following: (i) the deferment program application criteria and procedures for borrowers to apply either online or by telephone, and (ii) an initial report (i.e. the Mortgage Deferment Status Report), which must be updated in 15 day intervals for the duration of the public health emergency and 60 days thereafter. These submissions are due to the Department via email no later than May 8, 2020.
The FAQs are available here.