Congress passed a $2 trillion COVID-19 economic relief package on March 27, 2020 with overwhelming bipartisan support. Here is more about Coronavirus Aid, Relief, and Economic Security (CARES) Act provided in a summary of provisions from NAR for REALTORS® and their consumers including this critical information:
Provides For:
- Mortgage Forbearance - Borrowers of government-backed mortgages ((Fannie Mae, Freddie Mac, HUD, VA and USDA) can request up to 360-day payment forbearance without proof of hardship. No additional fees, interest, or penalties can be assessed for the forbearance. Except for abandoned or vacant property, there may be no foreclosure actions for 60 days from 3/18/2020.
- Owners of multifamily properties who were current on their mortgage payments as of February 1, 2020, and have federally insured, assisted, or supplemented loan (Fannie Mae, Freddie Mac, FHA or any loans backed or assisted by any branch of the federal government, including LIHTC) may request forbearance for 30 days due to financial hardship, with extensions of up to a total of 90 days. Borrowers receiving the forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
- Moratorium on eviction filings, or fees or penalties for tenants for nonpayment of rent for 120 days on properties insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, covered by the Violence Against Women Act of 1994.
- $1.25b for Section 8 voucher rental assistance for seniors, the disabled, and low-income working families, who will experience loss of income from the coronavirus.
- $5b for CDBG to help communities and states address COVID-19.
- $1 billion for project-based rental assistance to make up for reduced tenant payments as a result of coronavirus.
- $50m for Section 202 Housing for the Elderly to maintain housing stability and services for low-income seniors.
- $15 million for Section 811 Housing for Persons with Disabilities to make up for reduced tenant payments as a result of coronavirus.
Credit Reporting & Student Loans
Credit Reporting
- If furnishers provide an accommodation and the customer makes their payment or if no payment is required, then the furnisher must report customer as current.
- If the customer was delinquent before the accommodation, but brings account current, then the furnisher must report customer as current.
- Furnishers may maintain status of written off accounts.
- These provisions apply from January 30, 2020 to 120 days after enactment of this bill or the end of the national emergency.
Student Loans
- Suspends all payment due on federal student loans for 6 months.
- Interest shall not accrue on these during this forbearance.
- For the purpose of loan forgiveness, loans will be deemed paid during the forbearance.
- Prohibits negative credit reporting or involuntary debt collection during forbearance period.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides financial assistance for both individuals and small businesses.
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