CARES Act Foreclosure Audit Worksheet

Updated 07/08/2021

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.


Members Can Download This Tool

Login to Download

Not Yet a Member?

Our members enjoy:

On-demand regulatory guidance hotline – by chat, phone and email – available from anywhere, on any device – 7 am - 6 pm, M-F, Central time 

Research time saved daily & weekly across forms, checklists, and trainings — for every regulation

Hours of form-building and branding of bank documents saved; in some cases, even the budget of additional staff

A sounding board for support and reassessment when institutional goals or the regulatory environment changes

Access to attorneys and compliance specialists for risk modelling and decision-making in advance of large business decisions

The knowledge that C/A was created and owned by 30 State Bankers Association to provide bank compliance services to their membership organizations

Find out how a personalized team of attorneys and compliance professionals helps build targeted compliance strategies throughout your institution when you take our Live Membership Demo.

Become a Member