- April 20, 2020
- All New York State Agents, Office Counsel, and Managers
- The Coronavirus Aid Relief and Economic Security (CARES) Act
The Coronavirus Aid Relief and Economic Security Act (hereinafter, “CARES”), which became effective on March 27, 2020, proscribes the initiation or continuation of certain acts during the COVID-19 crisis. These proscriptions apply only to federally backed mortgage loans which are secured by a lien on a 1-4 family dwelling. As you are aware, sales out of a foreclosure and short sales are already the subject of underwriter approval as Ultra-Hazardous Risks (see bulletins NY000583 and NY000635). Accordingly, during the period this act is in effect, Stewart Title Insurance Company is requiring that you add to all foreclosure certifications an affirmative notation that you have reviewed the transaction for compliance with the CARES Act.
While the full text of the act may be found at https://www.congress.gov/116/bills/hr748/BILLS-116hr748enr.pdf, a few key points:
- The law went into effect on March 27, 2020, and as of right now, the moratorium runs through May 18, 2020.
- During the time period the moratorium is in effect, a lender cannot
- Initiate a foreclosure;
- Notice and conduct a foreclosure hearing; or
- Conduct a foreclosure sale or execute a foreclosure related eviction.
The relevant text from Section 4022 of the statute is as follows:
“(2) FORECLOSURE MORATORIUM.—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”
Please note we have a dedicated site on VU for all things COVID-19 related available: https://www.vuwriter.com/en/coronavirus-resources.html.
In the event you have any questions regarding the above, please contact Stewart Title Legal Department at 212-922-0050 and speak with any Underwriting Counsel.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
- Bulletins Replaced:
- Related Bulletins:
- NY000637 Recording Offices Closed Because of Coronavirus Disease 2019 (COVID-19)
- NY000637a Recording Offices Closed Because of Coronavirus Disease 2019 (COVID-19)
- NY000638 Surrogate’s Court Closures
- NY000640 NY Recording Office Closures in light of COVID-19
- NY000641 New York State Executive Order 202.7 Audio-Visual-Notaries during COVID-19 Crisis
- NY000641a New York State Executive Order 202.7 Audio-Visual-Notaries during COVID-19 Crisis
- Underwriting Manual:
- Exceptions Manual: