Advantage MPP published Bulletin 07-20 COVID-19 Related Extensions, which provides an extension of the underwriting flexibilities offered Bulletin 03-20 and an extension of the foreclosure and eviction moratorium offered in Bulletin 02-20. These extensions will last through June 30, 2020.
Extension of Underwriting Flexibilities due to COVID-19
Under MPP Bulletin 03-20, FHLBank Indianapolis offered underwriting flexibilities for issues such as appraisals and employment verification. These flexibilities were offered for loans with application dates through May 17, 2020. These flexibilities have been extended to include loans with application dates through June 30, 2020.
Extension of Foreclosure and Eviction Moratorium due to COVID-19
Under MPP Bulletin 02-20, servicers were directed to suspend all foreclosure and eviction actions for 60 days with the exception of properties that were determined to be vacant or abandoned. The moratorium on foreclosures and evictions is now being extended through June 30, 2020.
As a reminder, MPP Bulletin 04-20 included direction regarding the reporting of loans that have been afforded a COVID-19 related payment forbearance. ALL servicers should report each month regardless of the number of loans on forbearance. If there are no loans to report, servicers may simply send an email stating ‘no forbearance loans to report” to the reporting mailbox at firstname.lastname@example.org to ensure the reporting obligation has been met.
Additionally, MPP Bulletin 06-20, which was published on May 11, included the implementation of delegated authority for servicers to establish forbearance repayment resolutions with borrowers. Please understand, it is not necessary for servicers to collect a hardship package from borrowers prior to accepting a full reinstatement.
The MPP Guide and all recent Bulletins are available online at www.fhlbi.com on the Advantage MPP Program Materials page.