Mortgage Forbearance and the CARES Act: What It Means for Lenders and Borrowers

Under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act” or “Act”) borrowers may apply for mortgage loan forbearance for those “experiencing a financial hardship during the COVID-19 Emergency.” In this article we will discuss to whom Act applies, what is required of borrowers and lenders when forbearance is requested, what is required of borrowers and lenders when forbearance is entered, and potential long-term consequences of this program for lenders.