Five federal financial institution regulatory agencies, including the NCUA, in conjunction with state bank and credit union regulators, jointly issued a statement to communicate the agencies’ supervisory and enforcement approach to mortgage servicers as risks associated with the COVID-19 pandemic continue to change, the NCUA told credit unions this week.
The joint a statement says that, while the COVID-19 pandemic continues to affect consumers and mortgage servicers, the agencies believe the temporary supervisory and enforcement flexibility described in the April 3, 2020, Joint Statement, “Supervisory and Enforcement Practices Regarding the Mortgage Servicing Rules in Response to the COVID-19 Emergency and the CARES Act,” is no longer necessary, according to the NCUA letter to credit unions.
The NCUA said that the temporary flexibility announced in the April 2020 joint statement no longer applies and instead, the agencies will apply their respective supervisory and enforcement authorities, where appropriate, to address any noncompliance or violations of the Regulation X mortgage servicing rules that occur after the date of issuance of the statement.
“The NCUA recognizes the ongoing challenges faced by mortgage servicers and their efforts to assist members affected by the ongoing COVID-19 pandemic,” the letter stated. “The NCUA encourages servicers to continue working with their borrowers who may be experiencing financial difficulty.”