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The Future After Forbearance: What’s Next?

Nicole Schiavo
MVA White Collar Defense, Investigations, and Regulatory Advice Blog
November 2020

MVA Financial Regulatory Advice and Response Counsel Nicole Schiavo’s MVA White Collar Defense, Investigations, and Regulatory Advice Blog article titled, “The Future After Forbearance: What’s Next?” was published on November 17.

The article

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) requires lenders on all government-backed loans to provide forbearance agreements on residential loan payments for a period of 180 days to any borrower that requests relief and affirms they are experiencing a financial hardship due, directly or indirectly, to the COVID-19 emergency. As we near eight months since its enactment, the initial forbearance periods are beginning to expire. The CARES Act allows borrowers to request an additional 180-day extension, but that request must be made during the initial 180-days. With many borrowers likely unaware of their expiration date, it is unclear whether timely requests for extensions are being made and whether servicers will honor an extension request that is not timely.

To view the complete blog article, please click here.