OCC, HUD, VA and FHFA COVID-19 Updates
HUD, VA and FHFA Extend Foreclosure and Eviction Moratoriums
In efforts to assist mortgagors and renters as they recover financially, the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs (VA), and the Federal Housing Finance Agency (FHFA) announced another extension of previously issued foreclosure and eviction moratoriums until at least August 31, 2020. The prior moratoriums were set to expire on June 30, 2020.
To review Proctor’s previously issued announcements on this matter, follow the links below:
OCC Reminds that Federal Standards Govern Banks
All levels of government across the country have announced various actions in response to COVID-19; however, the Office of the Comptroller of the Currency (OCC) published a bulletin to remind stakeholders that banks are governed predominantly by uniform federal standards. The OCC encourages states and localities to expressly exempt federally chartered banks from their laws.
According to the OCC, “the proliferation of a multitude of competing requirements will conflict with banks’ ability to operate effectively and efficiently, potentially increasing the risk to banks’ safety and soundness and ultimately harming consumers.” Within the publication, the OCC highlights examples of the types of state laws that do not apply to banks’ activities due to federal preemption. Some examples noted by the OCC include, but are not limited to; terms of credit, term to maturity, disbursements and repayments, and processing origination, and servicing mortgages.
As a cautious measure, the OCC recommends that banks consult with counsel when determining whether any particular state or local law applies, and welcome inquiries related to this matter.
To review the Bulletin in its entirety for complete details, click here.