An Important Notice about COVID-19 (the “Coronavirus”) from Premier Mortgage Resources

At PMR, there is nothing more important to us than people. Our employees, our customers and our communities come first.

We are continuing to closely monitor markets and events and we know that many have seen economic impact and reduction of income due to the global pandemic of COVID-19 (the coronavirus).

Our primary concern is the health and safety of you and your family. In the event the Coronavirus affects your home or your place of business, we want you to be aware of available payment assistance options so you can maintain your monthly financial obligations with peace of mind.  Below is a guidance document explaining the Coronavirus Aid, Relief, and Economic Security (CARES) Act as it pertains to mortgage forbearance.

Objective

The CARES Act puts in place two protections for homeowners with federally backed mortgages:

  1. A foreclosures moratorium
  2. A right to forbearance for homeowners who are experiencing a financial hardship due to the COVID -19 emergency

Summary

The CARES Act allows a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID-19 emergency may request a forbearance, regardless of delinquency status by

  • submitting a request to their mortgage servicer; and
  • affirming the financial hardship during the COVID-19 emergency

The CARES Act defines “covered period” as the period commencing on March 27, 2020 and ending on the first to occur of (A) the termination date of the national emergency concerning the coronavirus disease outbreak declared by the President on March 13, 2020 and (B) December 31, 2020.

Eligibility

The mortgage must be federally owned or otherwise backed by

  • HUD/FHA (including reverse mortgages)
  • USDA
  • VA
  • Fannie Mae
  • Freddie Mac

Many states are implementing or considering implementing various mortgage relief options. The CFPB and other financial regulators are encouraging servicers to provide relief options regardless if the loan is a Federally backed loan.

Borrower Rights

Forbearance

During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial

hardship due, directly or indirectly, to the COVID–19 emergency may request forbearance

regardless of delinquency status, by—

  • submitting a request to the borrower’s servicer; and
    • the borrower must contact their servicer to request
  • affirming that the borrower is experiencing a financial hardship during the COVID–19 emergency.

The forbearance must be granted for up to 180 days and shall be extended for an additional period of up to 180 days at the borrower request.

Servicer Requirements

Forbearance

Upon this request for forbearance, the servicer cannot require additional documentation other than the borrower’s attestation to a financial hardship caused by the COVID-19.

During the forbearance period, servicers are prohibited from charging fees or interest beyond what the borrower would have had to pay if they were making their payments as scheduled.

Foreclosure Moratorium

Except vacant or abandoned property, a servicer may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order a sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020

Credit Reporting

During forbearance, the credit reporting will be reported as

  • report the loan as current as if the borrower was making the suspended payments
  • if the loan was delinquent at the before the forbearance, the loan will maintain the delinquent status

Forbearance Definition

A forbearance is a pause or reduction in the mortgage payments for a limited period.

  • It is not a forgiveness of debt
  • Missed or reduced payment must be paid in the future
    • Regular interest will still accrue

After Forbearance

The mortgage forbearance is not a forgiveness of debt, and the borrower will need to work with the servicer. The servicer will evaluate the borrower for a workout option prior to expiration of the forbearance plan. Options may include:

  • Mortgage loan is brought current through a reinstatement
  • Borrower is approved for another workout option
    • Repayment plan
    • Modification
    • Liquidation

Options available are directed by regulatory (federal and state), investor, or insurer requirements.

Borrower Resources

Borrowers need to contact their mortgage servicers directly.

For borrowers who are serviced by Premier Mortgage Resources the contact information is:

https://pmr.servicingdivision.com/

866-236-2783

 

CFPB Resources

https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/

At PMR, we will continue to monitor the situation closely and update this page with new information as it becomes available.