CO M P LI A N C E
REGULATORY CORNER FEDERAL COMPLIANCE HUD: HOUSING INSPECTIONS HUD Secretary Fudge announced that HUD will substantially increase housing inspections beginning on June 1, 2021. Last year, in response to the COVID-19 pandemic and in line with public health guidance, HUD took many steps to protect HUD-assisted households and the people who provide that assistance from exposure to COVID-19. Among those steps was the suspension of most in-person housing inspections by the Real Estate Assessment Center last year along with waivers that enabled Public Housing Authorities and Multifamily housing owners and managers to reduce activities that could contribute to COVID-19 transmission. Multifamily housing owners and property managers were informed on Friday that HUD has developed detailed protocols guiding all aspects of the inspection process. HUD, in collaboration with the CDC, will implement additional protocols and associated safety measures, including: • The inspection of high priority/risk properties for both the Public Housing and Multifamily portfolios before other properties. • Evaluation of known property-specific health conditions prior to the inspection. • Regular COVID-19 testing of inspectors and efforts to facilitate the vaccination of inspectors. • Travel and quarantine guidelines for inspectors. • Detailed operational protocols for inspectors pre-inspection, during the inspection, and post-inspection reviewed by the CDC. • Ability for residents to opt-out of unit inspections when inspectors arrive onsite.
HUD: EQUAL ACCESS RULE Also, HUD announced it is withdrawing the previous administration’s proposed rule that would have weakened the Equal Access Rule. The Rule ensures that all individuals, regardless of sexual
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orientation or gender identity, have equal access to the Department’s Office of Community Planning and Development programs, shelters, other buildings and facilities, benefits, services, and accommodations. HUD also announced it is releasing technical assistance resources to HUD grantees. These resources will support HUD’s Office of Community Planning and Development grantees in implementing the Equal Access Rule.
FHFA: EXTENSIONS The FHFA announced that Fannie Mae and Freddie Mac will extend some temporary loan origination flexibilities until May 31, 2021. All temporary flexibilities were originally set to expire on April 30. Alternative appraisals on purchase and rate-term refinance loans are among the flexibilities that will now be extended through May 31, 2021. Those temporary flexibilities related to employment verification, condominium project reviews, and expanded power of attorney are being allowed to expire as scheduled on April 30, 2021. Due to low usage of the temporary flexibilities, FHFA expects to retire all temporary selling flexibilities on May 31, 2021.
FHA: UPDATES TO FHA SINGLE FAMILY HOUSING POLICY HANDBOOK The FHA announced the publication of an update to the Servicing and Loss Mitigation section of the FHA Single Family Housing Policy Handbook4000.1. The update streamlines many standard operational requirements for mortgage servicers, including revising FHA’s loss mitigation home retention “waterfall” so that servicers can more quickly offer effective loss mitigation home retention options to borrowers in danger of losing their homes to foreclosure. Additional changes streamline and enhance many servicing requirements to provide more consistency with industry practices and
reduce barriers to servicing FHA-insured single-family mortgages.
CFPB: INTERIM FINAL RULE ON FDCPA The CFPB issued an interim final rule in support of the CDC’s eviction moratorium. The CFPB’s rule requires debt collectors to provide written notice to tenants of their rights under the eviction moratorium and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium. In its press release, the CFPB said debt collectors who evict tenants who may have rights under the CDC’s moratorium without providing notice of the moratorium or who misrepresent tenants’ rights under the moratorium can be prosecuted by federal agencies and state attorneys general for violations of the FDCPA and are also subject to private lawsuits by tenants. A temporary eviction moratorium ordered by the CDC has been extended through June 30, 2021. The CDC order generally prohibits landlords from evicting tenants for non-payment of rent, if the tenant submits a written declaration that they are unable to afford full rental payments and would likely become homeless or must move into a shared living setting. This prohibition applies to an agent or attorney acting as a debt collector on behalf of a landlord or owner of the residential property. Under the FDCPA interim final rule, debt collectors, including attorneys, seeking to evict tenants for non-payment of rent must provide tenants who may have rights under the CDC order with clear and conspicuous written notice of those rights. The notice must be provided on the same date as the eviction notice, or, if no eviction notice is required by law, on the date that the eviction action is filed. The CFPB is providing debt collectors with
sample language to satisfy the rule’s disclosure requirements.
The interim final rule will become effective May 3, 2021, with earlier compliance optional. Comments due by May 10, 2021.
