PHH HOME LOANS


What is the CARES Act and how do I know if it applies to my loan?


The CARES Act is a piece of federal legislation that was signed into law on March 27, 2020. It requires mortgage servicers to provide various forms of COVID-19-related relief to borrowers with particular loan types (see below), including:

  • For all covered loans where the borrower has requested forbearance, the mortgage servicer must:
    • Grant such forbearance for up to 180 days;
    • Extend such forbearance for an additional period of up to 180 days (if requested by the borrower); and
    • Waive all fees, penalties or interest that accrued during forbearance beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract.
  • For all covered loans that are not secured by vacant or abandoned property (regardless of whether relief is requested), mortgage servicers cannot 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.

Importantly, this legislation is not applicable to all loan types and only applies to federally backed mortgage loans, which constitute less than half of our serviced loans, and include residential loans that are (a) owned or securitized by the Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac); (b) guaranteed or made by the Department of Agriculture (USDA); (c) insured or guaranteed by the Federal Housing Administration (FHA) or the Department of Veteran Affairs (VA), or Department of Agriculture (USDA); or (d) insured or guaranteed under either section 255 of the National Housing Act (covering home equity conversion mortgages) or sections 184 or 184A of the Housing and Community Development Act (covering programs for Indian families, housing authorities, and tribes and for Hawaiian home lands).

Additional information about the CARES Act is available from the Consumer Financial Protection Bureau (CFPB).


How do I determine what kind of loan I have?


If you’re not sure what type of loan you have, you can consult the following resources:

  • Check your HUD-1 Statement or Closing Disclosure from your loan closing. The top of the first page of the document contains a series of check boxes. The “FHA” box should be checked if you have a loan insured by the Federal Housing Administration. Similarly, the “VA” box should be checked if you have a loan guaranteed or insured by the Department of Veterans Affairs.
  • You can use the Federal Home Loan Mortgage Corporation (Freddie Mac) loan lookup tool (available at https://ww3.freddiemac.com/loanlookup/) to determine if your loan has been purchased or securitized by Freddie Mac.
  • You can use the Federal National Mortgage Association (Fannie Mae) loan lookup tool (available at https://www.knowyouroptions.com/loanlookup#form) to determine if your loan has been purchased or securitized by Fannie Mae.
  • If in doubt, you can call us at 1-800-936-8705. However, in light of elevated hold times during the COVID-19 pandemic, we encourage you to utilize the above self-help resources to the extent possible.


If the CARES Act requires mortgage servicers to provide up to 360 days of forbearance for covered loans, why am I only being offered 90 days of forbearance?


As we mentioned, not all loans are covered by the CARES Act. Please utilize the tools noted above to determine if your loan is covered by the CARES Act.

For loans that are covered by the CARES Act, we, like most other servicers, have chosen to administer the required forbearance under the CARES Act in 90-day increments. We will extend another 90 days of forbearance unless you indicate that you are prepared to resume making monthly payments and no longer need/want additional forbearance. However, it is your obligation under the CARES Act to request additional forbearance beyond the first 180 days, if needed/desired. If you do request forbearance beyond the first 180 days, we will implement the second 180-day period of forbearance similarly to the first 180 days.