CARES Act Foreclosure Audit Worksheet

This tool is to be used in to ensure compliance with the CARES Act's foreclosure prohibitions. Mortgage companies who engage in federally backed mortgage lending and servicing must meet and abide by the CARES Act, federal regulations, and investor servicing guidelines. The CARES Act provides protections for borrowers with federally-backed mortgages, which are mortgage loans purchased or securitized by Fannie Mae or Freddie Mac, and loans made, insured or guaranteed by the Department of Housing and Urban Development, Department of Veteran Affairs, or Department of Agriculture. The CARES Act prevents mortgage servicers from initiating a judicial or non-judicial foreclosure, seeking a court order for foreclosure judgment or order of sale, from holding a foreclosure sale, or from executing a foreclosure-related eviction. Servicers of federally-backed mortgages must provide forbearances as follows: Forbearance must be granted upon receiving a request for forbearance from a borrower and the borrower’s attestation to a financial hardship caused by the COVID-19 emergency. The CARES Act mandates that the forbearance period for borrowers with COVID-related hardships can last as long as two consecutive 180-day periods. No additional interest, fees or penalties can be charged beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract.

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