1 1 (April 14, 2020)

handle is hein.crs/govcvyq0001 and id is 1 raw text is: 









               Researh Sevice






Mortgage Provisions in the Coronavirus Aid,

Relief, and Economic Security (CARES) Act



April 14, 2020
The COVID- 19 pandemic has had wide-ranging impacts. With many households experiencing income
disruptions, some may have difficulty making their mortgage or rent payments on their homes. An
inability of tenants to pay rent can, in turn, impact the ability of landlords to remain current on any
mortgage on the rental property.
On March 27, 2020, the President signed the CARES Act (P.L. 116-136) into law. Among many other
provisions, it includes some intended to provide temporary relief for certain affected mortgage borrowers:
    *  Section 4022 provides for forbearance and a foreclosure moratorium for federally backed
       single-family mortgages.
    *  Section 4023 provides for forbearance for federally backed multifamily mortgages.
The CARES Act also includes a temporary moratorium on eviction filings for tenants in certain properties
(Section 4024), discussed in CRS Insight IN 11320, CARESAct Eviction Moratorium.
Forbearance generally refers to a period during which a borrower is allowed to make reduced mortgage
payments or suspend payments altogether. Forbearance is not debt forgiveness; the borrower generally
must repay the missed mortgage payments after the forbearance period ends.
The forbearance provisions in the CARES Act apply to federally backed mortgages. Several federal
agencies insure or guarantee single-family and/or multifamily mortgages, including the Department of
Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) and the
Section 184 and Section 184A programs for Native Americans and Native Hawaiians, respectively; the
Department of Veterans Affairs (VA); and the U.S. Department of Agriculture (USDA) (which also
directly originates some mortgages). Additionally, the government-sponsored enterprises (GSEs) Fannie
Mae and Freddie Mac purchase eligible single-family and multifamily mortgages and guarantee securities
backed by those mortgages. The CARES Act provisions cover all of these, including FHA-insured reverse
mortgages.
Prior to the passage of the CARES Act, Fannie Mac and Freddie Mac, HUD, USDA, and VA each
released guidance requiring or encouraging temporary foreclosure suspensions for the mortgages they
back and reminding mortgage servicers of existing options to assist troubled borrowers, including

                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                    IN11334

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