Section 1707 - Definitions

6 Analyses of this statute by attorneys

  1. The Federal Foreclosure Moratorium is Extended

    McGlinchey StaffordSanford ShatzMay 27, 2020

    ch provided that except for vacant or abandoned property, a servicer of a loan guaranteed or insured by the VA may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale.Finally, the USDA issued its moratorium against initiating or completing foreclosures in process for all USDA Single-Family Housing Guaranteed Loan Program loans for 60 days from March 19, 2020.The CARES Act Foreclosure MoratoriumThe CARES Act foreclosure moratorium applied to “federally backed mortgage loans,” which were defined as follows:“The term ‘Federally backed mortgage loan’ includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is—(A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.);(B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20);(C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b);(D) guaranteed or insured by the Department of Veterans Affairs;(E) guaranteed or insured by the Department of Agriculture;(F) made by the Department of Agriculture; or(G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.”See CARES Act, § 4022(a)(2).A loan subject to the CARES Act foreclosure moratorium must meet four requirements: (1) secured by a first or subordinate lien, (2) on residential real property, (3) with occupancy of one to four units, and (4) made, guaranteed, or insured by the FHA or HUD, the VA or the USDA, or purchased or securitized by Fannie Mae or Freddie Mac. There was a separate provision for residential multi-family loans.

  2. COVID-19 Eviction Moratoria: New Rules Affecting Landlords and Tenants

    BakerHostetlerAmy KelloggApril 8, 2020

    [4] CARES Act §4024(c). [5] Pursuant to CARES Act §4022, the term ‘‘Federally backed mortgage loan’’ is defined to include “any loan which is secured by a first or subordinate lien on residential real property designed principally for the occupancy of from 1- to 4- families that is (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z–20); (C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z–13a, 1715z–13b); (D) guaranteed or insured by the Department of Veterans Affairs; (E) guaranteed or insured by the Department of Agriculture; (F) made by the Department of Agriculture; or (G) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.” [6] CARES Act §4022(b).

  3. Key Provisions of the CARES Act Affecting Mortgage Servicers

    Alston & BirdNanci WeissgoldMarch 31, 2020

    [1] We note that this raises some unique questions regarding preemption of certain state consumer laws regarding consumer credit reporting.[2] Note that, while outside the scope of this summary, Section 4023 of the CARES Act addresses foreclosure moratoria for certain multifamily loans.[3] “Federally backed mortgage loan” means any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4- families that is (A) insured by the Federal Housing Administration under title II of the National Housing Act (12 U.S.C. 1707 et seq.); (B) insured under section 255 of the National Housing Act (12 U.S.C. 1715z-20); (C) guaranteed under section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. 1715z-13, 1715z-13b); (D) guaranteed or insured by the Department of Veterans Affairs; (E) guaranteed or insured by the Department of Agriculture; (F) made by the Department of Agriculture; or (G) purchased or securitized by the Federal Home Loan Mortgage Corporation (i.e., Freddie Mac) or the Federal National Mortgage Association (i.e., Fannie Mae).[4] Note that Section 4023 of the CARES Act provides that “a multifamily borrower…may submit an oral or written request for forbearance,” further suggesting that oral requests must be considered under Section 4022.[5] See 50 U.S.C. §§ 1622(a)-(b), (d).

  4. COVID-19 Update: Key Provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act

    Cadwalader, Wickersham & Taft LLPMarch 31, 2020

    Except with respect to a vacant or abandoned property, a servicer of a Federally backed mortgage loan may not initiate any judicial or non-judicial foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale for not less than the 60-day period beginning on March 18, 2020.Key Definition. The term “Federally backed mortgage loan” includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from one to four families that is (i) insured by the Federal Housing Administration under Title II of the National Housing Act (12 U.S.C. §1707 et seq.), (ii) insured under Section 255 of the National Housing Act (12 U.S.C. §1715z-20), (iii) guaranteed under Section 184 or 184A of the Housing and Community Development Act of 1992 (12 U.S.C. §§1715z-13a, 1715z-13b), (iv) guaranteed or insured by the Department of Veterans Affairs; (v) guaranteed or insured by the Department of Agriculture, (vi) made by the Department of Agriculture or (vii) purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.Forbearances – Federally Backed Multifamily Mortgage Loans. During the covered period, a multifamily borrower with a Federally backed multifamily mortgage loan (as defined below) experiencing a financial hardship due, directly or indirectly, to the COVID-19 Emergency may request a forbearance, provided such borrower was current on its payments as of February 1, 2020.

  5. Mortgage Banking Update

    Ballard Spahr LLPRichard J. Andreano, Jr.May 2, 2019

    portion or all of the borrowers 3.5% minimum required investment (MRI) in the home purchase transaction. FHA mortgagees must document that the borrower’s MRI was provided by a government entity as either a gift or through secondary financing in a manner consistent with the National Housing Act and HUD Handbook 4000.1. Specifically, the new documentation requirements provide in part that mortgagees must obtain:For federal, state or local government agencies, a copy of documentation from a jurisdiction in which the property is located, which granted governmental authority to the entity;A legal opinion signed and dated within two years of closing of the transaction by attorneys for the governmental entity stating: the attorney has reviewed the governmental entity’s down payment assistance program; andEither:the governmental entity is considered within the jurisdiction in which the property is located to be either a federal, state (as defined in Section 201(d) of the National Housing Act (12 U.S.C. §1707(d)), or local government or agency or instrumentality thereof, as provided in Section 528 of the National Housing Act (12 U.S.C §1735f-6), and 24 CFR 203.32(b) and further clarified in the Handbook 4000.1;the governmental entity is a federally recognized Indian Tribe operating on tribal land in which the property is located or to enrolled members of the tribe; orthe governmental entity is a Federal Home Loan Bank;Evidence that the down payment assistance is being provided by the governmental entity by collecting either: a letter from the governmental entity, signed by an authorized government official, establishing that the funds provided towards the borrower’s MRI were provided in the governmental entity’s governmental capacity in the jurisdiction in which the property is located consistent with its down payment assistance program and that the provision of such funds is not contingent upon any future transfer of the insured mortgage to a specific entity, and a canceled check, evidence o

  6. New HUD Requirements for Down Payment Assistance Provided by Government Entities

    Ballard Spahr LLPRichard J. Andreano, Jr.April 22, 2019

    rs 3.5% minimum required investment (MRI) in the home purchase transaction. FHA mortgagees must document that the borrower’s MRI was provided by a government entity as either a gift or through secondary financing in a manner consistent with the National Housing Act and HUD Handbook 4000.1. Specifically, the new documentation requirements provide in part that mortgagees must obtain: For federal, state or local government agencies, a copy of documentation from a jurisdiction in which the property is located, which granted governmental authority to the entity; A legal opinion signed and dated within two years of closing of the transaction by attorneys for the governmental entity stating: The attorney has reviewed the governmental entity’s down payment assistance program; and Either The governmental entity is considered within the jurisdiction in which the property is located to be either a federal, state (as defined in Section 201(d) of the National Housing Act (12 U.S.C. §1707(d)), or local government or agency or instrumentality thereof, as provided in Section 528 of the National Housing Act (12 U.S.C §1735f-6), and 24 CFR 203.32(b) and further clarified in the Handbook 4000.1; The governmental entity is a federally recognized Indian Tribe operating on tribal land in which the property is located or to enrolled members of the tribe; or The governmental entity is a Federal Home Loan Bank; Evidence that the down payment assistance is being provided by the governmental entity by collecting either: A letter from the governmental entity, signed by an authorized government official, establishing that the funds provided towards the borrower’s MRI were provided in the governmental entity’s governmental capacity in the jurisdiction in which the property is located consistent with its down payment assistance program and that the provision of such funds is not contingent upon any future transfer of the insured mortgage to a specific entity, and a ca