Consumer complaint received 2024-03-26
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc. (MN)

What must furnishers do in reporting the status of an account after a CARES Act accommodation ends?

ANSWER The consumer reporting protections of the CARES Act continue to apply to the time period that was covered by the accommodation after the accommodation ends. Assuming payments were not required or the consumer met any payment requirements of the accommodation, a furnisher can not report a consumer that was reported as current pursuant to the CARES Act as delinquent based on the time period covered by the accommodation after the accommodation ends. A furnisher also can not advance the delinquency of a consumer that was maintained pursuant to the CARES Act based on the time period covered by the accommodation after the accommodation ends.

A customer performing on a COVID 19 forbearance is considered current.

( v ) Certain COVID-19-related loss mitigation options.

( A ) Notwithstanding paragraph ( c ) ( 2 ) ( i ) of this section, a servicer may offer a borrower a loss mitigation option based upon evaluation of an incomplete application, provided that all of the following criteria are met : ( 1 ) The loss mitigation option permits the borrower to delay paying covered amounts until the mortgage loan is refinanced, the mortgaged property is sold, the term of the mortgage loan ends, or, for a mortgage loan insured by the Federal Housing Administration, the mortgage insurance terminates. For purposes of this paragraph ( c ) ( 2 ) ( v ) ( A ) ( 1 ), covered amounts includes, without limitation, all principal and interest payments forborne under a payment forbearance program made available to borrowers experiencing a COVID-19 related hardship, including a payment forbearance program made pursuant to the Coronavirus Economic Stabilization Act, section 4022 ( 15 U.S.C. 9056 ) ; it also includes, without limitation, all other principal and interest payments that are due and unpaid by a borrower experiencing COVID-19 related hardship. For purposes of this paragraph ( c ) ( 2 ) ( v ) ( A ) ( 1 ), the term of the mortgage loan means the term of the mortgage loan according to the obligation between the parties in effect when the borrower is offered the loss mitigation option.

( 2 ) Any amounts that the borrower may delay paying as described in paragraph ( c ) ( 2 ) ( v ) ( A ) ( 1 ) of this section do not accrue interest ; the servicer does not charge any fee in connection with the loss mitigation option ; and the servicer waives all existing late charges, penalties, stop payment fees, or similar charges promptly upon the borrowers acceptance of the loss mitigation option.

( 3 ) The borrowers acceptance of an offer made pursuant to paragraph ( c ) ( 2 ) ( v ) ( A ) of this section ends any preexisting delinquency on the mortgage loan.

( B ) Once the borrower accepts an offer made pursuant to paragraph ( c ) ( 2 ) ( v ) ( A ) of this section, the servicer is not required to comply with paragraph ( b ) ( 1 ) or ( 2 ) of this section with regard to any loss mitigation application the borrower submitted prior to the servicers offer of the loss mitigation option described in paragraph ( c ) ( 2 ) ( v ) ( A ) of this section.