CARES Act Emergency Relief is Now Law:
On March 27, 2020, President Trump signed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, into law. This legislation rushes emergency relief to families and workers who need it most.
Direct assistance for individuals and families:
- Individuals earning up to $75,000 will receive $1,200, plus an additional $500 for each child.
- Couples earning up to $150,000 will receive $2,400, plus an additional $500 for each child.
- Requires consumer credit scores to be maintained as “current” if a lender enters into an accommodation agreement with a consumer.
Support for American workers:
- The CARES Act allows states to temporarily increase unemployment benefits and receive Federal reimbursement for the additional amount.
- Encourages States to waive the typical one week waiting period and provides an additional 13 weeks of benefits.
- Creates a new program to assist the self-employed and independent contractors who are unemployed due to the pandemic.
- Provides temporary relief to our financial institutions, making it easier to extend credit to American consumers and businesses that need it most.
Protecting Homeowners and Renters from Foreclosure and Eviction:
- Prohibits foreclosures on any federally backed mortgages for 60-days.
- Allows borrowers affected by COVID-19 to shift any missed payments to the end of their mortgage, with no added penalties or interest, for 180 days.
- Halts evictions for renters in properties with federally backed mortgages for 120 days.
Protecting the Most Vulnerable. As states and cities begin to ease lockdown restrictions, older Americans remain at a higher risk and are encouraged to remain vigilant. To keep older Americans connected, technology tools are available even for individuals who are less tech-savvy.
Protecting Consumers from Coronavirus Financial Impact:
Many Americans are still waiting to receive their Economic Impact Payment (The $1,200 check provided in the CARES Act). On May 19, 2020, the Consumer Financial Protection Bureau (CFPB) released a video explaining that some individuals may receive their payment as a pre-paid, VISA-branded debit card.
During and after the Coronavirus crisis, understanding your financial position will remain important. The major credit reporting bureaus are now offering free, weekly credit reports so that you can keep up to date with changes in your credit score.
The Consumer Financial Protection Bureau (CFPB) has provided useful resources to help consumers protect their families from the financial impact of COVID-19.
- You have trouble paying your bills or loans: The CFPB and other financial regulators have encouraged financial institutions to work with their customers to meet their needs during the coronavirus pandemic. Borrowers should reach out to servicers and lenders if they anticipate having trouble making their next payment.
- You lose your income: State and local governments provide helpful resources for employees impacted by the coronavirus. Additionally, seniors, who are disproportionately impacted by the coronavirus, may be eligible for government benefits available to older adults who need financial help.
- You are targeted by a scammer: Scammers are always on the hunt for opportunities to take advantage of consumers. During uncertain times like these, we are especially vulnerable. Learn more about how to spot a scam and report fraud to the appropriate agency.
On March 16, 2020, Republican Committee leaders, led by Ranking Republican Patrick McHenry (NC-10), sent a letter to Consumer Financial Protection Bureau (CFPB) Director, Kathleen Kraninger, asking for her assistance in protecting seniors from coronavirus-fueled scams.
Mitigating Coronavirus Impact on Borrowers’ Financial Health:
On May 20, 2020, the Federal Housing Administration (FHA) released a video detailing resources available to homeowners in the CARES Act.
On May 19, 2020, the Federal Housing Finance Agency (FHFA) announced new guidance for borrowers who had availed themselves of forbearance options and who wish to refinance their mortgage or purchase a new home.
On March 18, 2020, the Federal Housing Finance Agency (FHFA) and the Trump Administration took a bold step to prevent homeowners with loans insured by the Federal Housing Administration (FHA) or owned by Fannie Mae or Freddie Mac from being foreclosed upon or evicted during this national emergency. Further, on May 14, 2020, FHFA and the administration extended the moratorium to June 30, 2020.
On May 12, 2020, the Consumer Financial protection Bureau (CFPB), the Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD) released a new website outlining options for homeowners and renters facing financial hardship due to the coronavirus crisis.
The Federal Housing Administration, the Department of Veterans Affairs, and the U.S. Department of Agriculture have created a fact sheet to help borrowers and loan servicers understand the resources available to them if they are unable to pay their mortgage as a result of financial hardship caused by the coronavirus pandemic.
The Federal Housing Finance Agency (FHFA) and Federal Housing Administration (FHA) have taken steps to remind borrowers of hardship forbearance options:
- FHFA has announced that COVID-19 will trigger protocols similar to a natural disaster.
- Borrowers should contact their lenders directly before missing a payment to report a hardship related to COVID-19.
- Hardship forbearance resources can be used to mitigate the impact of a missed paycheck, lost job, or other financial hardship resulting from COVID-19.
On March 16, 2020, Republican leader Patrick McHenry (NC-10), and Republican leader of the Subcommittee on Housing, Community Development, and Insurance, Steve Stivers (OH-15), sent letters to the nation’s largest Public Housing Authority (PHA) leaders urging them to implement policies to protect vulnerable residents from the coronavirus.
Check back regularly for additional details and visit cdc.gov for health resources and updates on COVID-19.
