CARES Act: Various Coronavirus Economic Stabilization Act Provisions
briefing by Elizabeth Danner and Kyle Corum
The Senate has passed the Coronavirus Aid, Relief and Economic Security (CARES) Act. This third federal COVID-19 aid package includes mortgage forbearance to multifamily property owners that suspend all evictions for renters unable to pay rent due to the impact of COVID-19.
The bill prohibits foreclosures on all federally-backed mortgage loans for a 60-day period beginning on March 18, 2020, and provides up to 180 days of forbearance for borrowers of a federally-backed mortgage loan who have experienced a financial hardship related to the COVID-19 emergency. It also provides up to 90 days of forbearance for multifamily borrowers with a federally backed multifamily mortgage loan who have experienced a financial hardship. Borrowers receiving forbearance may not evict or charge late fees to tenants for the duration of the forbearance period.
And finally, the bill provides a 120-day temporary moratorium on eviction filings for properties assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act of 1994.
A request for relief should be made to the servicer indicating the borrower is experiencing a financial hardship during the COVID-19 emergency.
Elizabeth Danner Principal, CPA
Elizabeth is a principal in our firm’s assurance area with over 16 years of experience in public accounting. Elizabeth is responsible for all aspects of the audit engagement, including planning, risk assessment, supervision, reporting, and technical issue resolution. She works primarily with non-profit organizations and clients involved in the affordable housing industry, including tax credit […]
Kyle Corum Partner, CPA, CFE
Kyle Corum is a Partner with BRC and is the leader of the Firm’s Advisory Services practice, which includes a variety of different types of engagements including: Cybersecurity Due diligence for mergers and acquisitions Fraud and Forensic Investigations Agreed upon procedures Internal control reviews and analysis Outsource CFO and Controller duties Litigation support Shareholder […]