BOARD OF GOVERNORS

OF THE

FEDERAL RESERVE SYSTEM

WASHINGTON, D.C. 20551

DIVISION OF CONSUMER AND

COMMUNITY AFFAIRS

CA 20-11

July 6, 2020

TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS 

SECTIONS:

SUBJECT: Examination Procedures for the Coronavirus Aid, Relief, and 

Economic Security Act (CARES Act)

Applicability to Community Banking Organizations: For the credit reporting 

provisions, this guidance applies to institutions supervised by the Federal Reserve with 

total consolidated assets of $10 billion or less. For the mortgage servicing provisions, this 

guidance applies to all institutions supervised by the Federal Reserve, including those 

with total consolidated assets of $10 billion or less.

The Board of Governors of the Federal Reserve (Board) recently developed the attached 

examination procedures for the credit reporting and mortgage servicing provisions of the 

Coronavirus Aid, Relief, and Economic Security Act (CARES Act).

1 The CARES Act

was signed into law on March 27, 2020, to provide relief to those who are impacted by

the Coronavirus Disease 2019 (COVID-19) emergency. Among other things, the CARES 

Act created new responsibilities for furnishers of certain credit information and for 

mortgage servicers of certain mortgage loans.

With respect to furnishers of credit information, the CARES Act amends the Fair Credit 

Reporting Act (FCRA).2 Generally, the amendment requires furnishers who provide a 

credit accommodation to a consumer affected by the COVID-19 emergency to continue 

to report the consumer’s account or credit obligation as “current” if the consumer was 

current prior to the accommodation. This provision ensures that consumers affected by 

the pandemic can obtain relief while minimizing the impact on their credit scores and 

their future ability to obtain credit, insurance, housing, or employment. For this 

provision, the Board has supervisory authority for institutions supervised by the Federal 

Reserve with total consolidated assets of $10 billion or less.

 1 Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (Mar. 27, 2020).

2 Section 4021 of the CARES Act amends section 623(a)(1) of the Fair Credit Reporting Act (15 U.S.C. 

§1681s-2(a)(1)) by adding a new section “(F) Reporting Information during COVID-19 Pandemic.”
2

With respect to mortgage servicers, the CARES Act generally requires servicers of

certain mortgages to grant forbearance requests from borrowers “experiencing a financial 

hardship due, directly or indirectly, to the COVID-19 emergency.”3 In addition, this 

provision of the CARES Act prohibited servicers of these mortgages from initiating 

foreclosures through May 17, 2020.4 Finally, the CARES Act requires servicers of 

certain multifamily mortgage loans to grant forbearance requests in certain

circumstances.5 For this provision, the Board has supervisory authority for all institutions 

supervised by the Federal Reserve, including those with total consolidated assets of $10 

billion or less.

Consistent with recent statements,6 when exercising supervisory and enforcement 

responsibilities, the Board will take into account the unique circumstances impacting 

borrowers and institutions resulting from the COVID-19 emergency. The Board will take 

into account an institution’s good-faith efforts demonstrably designed to support 

consumers and comply with consumer protection laws.7

 The Board expects that 

supervisory feedback for institutions will be focused on identifying issues, correcting 

deficiencies, and ensuring appropriate remediation to consumers. The Board does not 

expect to take a consumer compliance public enforcement action against an institution, 

provided that the circumstances were related to the COVID-19 emergency and that the 

institution made good faith efforts to support borrowers and comply with the consumer 

protection requirements, as well as responded to any needed corrective action.

If you have any questions, please contact Maureen Yap, Senior Counsel, Supervisory 

Policy and Outreach, at (202) 452-2642, or Meghan Karellas, Manager, Reserve Bank 

Oversight, at (202) 736-5536. In addition, questions may be sent via the Board’s public 

website.8

Sincerely, 

Carol Evans

Associate Director

Division of Consumer

and Community Affairs

 3 CARES Act Section 4022(a), (b), (c)(1); 15 U.S.C. §9056(a), (b), (c)(1).

4 CARES Act Section 4022(c)(2); 15 U.S.C. §9056(c)(2).

5 CARES Act Section 4023(a)-(c), (f); 15 U.S.C. §9057(a)-(c), (f).

6 See, e.g., Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working 

with Customers Affected by the Coronavirus (Revised) (April 7, 2020).

7 As reflected in the Uniform Interagency Consumer Compliance Ratings System, the agencies recognize 

that compliance management programs vary based on the size, complexity, and risk profile of supervised 

institutions. The agencies further recognize that institutions can promote consumer protection by 

preventing, self-identifying, and addressing compliance issues in a proactive manner. See FFIEC Guidance 

on the Uniform Interagency Consumer Compliance Rating System, available at: 

https://www.ffiec.gov/press/PDF/FFIEC_CCR_SystemFR_Notice.pdf.

8 See http://www.federalreserve.gov/apps/contactus/feedback.aspx. 
3

Attachment: 

Examination Procedures for the Coronavirus Aid, Relief, and Economic Security Act 

(CARES Act)