On 12/20/2021, the Department of Justice and Consumer Financial Protection Bureau (CFPB) issued two joint letters to remind Landlords and Mortgage Servicers to Adhere to the CARES Act and Additional Legal Requirements Under the Servicemembers Civil Relief Act. The first letter was sent to landlords and other housing providers regarding protections for military tenants. The second letter was sent to mortgage servicers regarding military borrowers who have already exited or will be exiting COVID-19 mortgage forbearance programs in the coming weeks and months.
According to the DOJ’s release, the letter to landlords and other housing providers reminds property owners of the important housing protections for military tenants, some of whom may have had to relocate or make other changes to their housing arrangements in response to the crisis. In addition, the letter to mortgage servicers comes in response to complaints from military families and veterans on a range of potential mortgage servicing violations, including inaccurate credit reporting, misleading communications to borrowers and required lump sum payments for reinstating their mortgage loans. These complaints are being reviewed for compliance by the CFPB with the Coronavirus Aid, Relief and Economic Security (CARES) Act and other applicable requirements.
The Justice Department and CFPB are calling on mortgage servicers and landlords to ensure that military homeowners and tenants are safeguarded during the pandemic and benefit equally from the nation’s economic recovery.
Read DOJ’s full release here.