Lenders and loan servicers may be required to report delinquent loans as current under the requirements of the CARES Act


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Tallahassee – The Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides fast and direct economic assistance for consumers and businesses negatively impacted by COVID-19, includes requirements regarding consumer credit reporting.

The Office of Financial Regulation (OFR) says it wants to remind lenders and loan servicers to review and follow the federal guidance previously issued by the Consumer Financial Protection Bureau (CFPB) to ensure compliance with the Fair Credit Reporting Act (FCRA) and the CARES Act.

Understand the modifications to the FCRA related to qualifying CARES Act accommodations


If a customer’s account was not delinquent as of April 1, 2020, and the customer received an accommodation and is complying with the accommodation agreement, the loan should be reported as current. Information on enforcing credit reporting protections can be found here. There may be other circumstances that qualify a customer’s account to be reflected as current under the CARES Act.

Be proactive with your customers

OFR wants all lenders and servicers to be proactive by quickly working with customers to resolve disputes, discrepancies, and errors, pertaining to their credit reports. Credit reporting errors can occur at any time; however, the challenges presented by the pandemic can amplify the financial challenges for the impacted customer.

Identify the cause of the reporting error and implement changes to prevent the occurrence moving forward

Determine the cause of the reporting error and take the necessary steps to correct the cause. This may include updating internal controls, reviewing internal credit reporting processes, and assessing third-party/vendor procedures.

On April 1, 2020, the CFPB issued a statement with information on lenders’ responsibilities under the CARES Act amendments to the FCRA. OFR says lenders should read the statement to be sure they are in compliance with the guidance. In addition, the CFPB provided frequently asked questions to help lenders comply with the credit reporting requirements of the CARES Act.