Guidance for Financial Institutions, Mortgage Lenders, and Mortgage Loan Servicers
On March 25, Governor Baker announced new guidance from the Division of Banks for financial institutions, mortgage lenders, and mortgage loan servicers. The guidance calls for all regulated financial institutions to take actions, both during and beyond the state of emergency, to accommodate mortgage borrowers unable to make timely payments due to financial hardships caused by the effects of COVID-19. These actions include, but are not limited to:
60-day postponement of foreclosures;
60-or-more day grace period for late mortgage payments that includes waiving late fees, online payment fees, and reporting to credit agencies;
Offering borrowers an additional 60-day grace period to complete trial loan modifications;
Ensuring the consistent availability of account management and customer service capabilities for borrowers, even if the mortgage servicer closes its office; and
Providing proactive outreach to borrowers explaining what assistance they offer.