COVID-19 Mortgage Forbearance Alert: Mortgage Servicers Busted Again!
Mortgage Servicers Busted Reporting COVID-19 Mortgage Forbearance Agreements To Credit Reporting Agencies Mortgage servicers are at it again with the shady tactics. This time they are reporting COVID-19 mortgage forbearance agreements to the credit reporting agencies. Mortgages in forbearance as a result of COVID-19 have to be reported as “current” on credit reports. That’s the law. Section 4021 of the CARES Act says servicers “shall report the credit obligation or account as current.” However, mortgage servicers have found a loophole. That loophole can make it difficult for people with mortgages in forbearance to get another home loan after the COVID-19 crisis is over. Homeowners who entered into a COVID-19 mortgage forbearance agreement could have their ability to refinance or buy a home impacted when the crisis is over. The CARES Act doesn’t mention the comments section of credit reports. This is the loophole servicers are exploiting. Mortgage ser...