Document Updates: Borrower’s Income Verification COVID-19 Declaration (Cx23858)

Cx23858 was created due to client and investor demands for a document in which the borrower declares, at the time of Closing, that certain facts regarding their ability to repay a loan are still true and have not been negatively impacted (particularly in regards to the COVID-19 pandemic.

We are noticing a demand from both clients and investors for additional language in this declaration regarding a borrower’s forbearance option under the Federal CARES Act (specifically, 15 U.S.C.A. § 9056). To meet this demand, we are adding the following points which the borrower declares that he/she/they understand(s):

• That Federal law permits the borrower to request a forbearance in connection with a “federally backed mortgage loan”;

• What a “federally backed mortgage loan” is (complete with a listing of the types of loans which meet the statutory definition);

• That the current loan being extended to the borrower may or may not be a “federally backed mortgage loan”;

• If the current loan is a “federally backed mortgage loan”, the borrower may have to wait a period after closing before requesting a forbearance, since it takes time for the loan to be sold to, insured or guaranteed by, certain investors and Federal Agencies (and thus to officially be a “federally backed mortgage loan”);

• If the current loan is not a “federally backed mortgage loan”, the borrower cannot request a forbearance pursuant to the CARES Act; and

• A bold and conspicuous statement that the forbearance is not a substitute for the borrower’s ability to repay the loan, along with a statement that the borrower is still required to eventually repay the amount of the forbearance.

This new language will be added immediately. Questions or concerns about this change may be directed to Client Support at 1.800.497.3584.

DR 315189