On February 12, the Director of the Washington Department of Financial Institutions issued their fourth amended guidance to residential mortgage loan servicers.  The guidance reminds residential mortgage loan servicers to take all necessary precautions to help prevent the spread of Covid-19, including allowing them to continue working from home (previously discussed here.)  It also urges servicers to take “reasonable and prudent actions” to support consumers by:

• Forbearing mortgage payments;
• Refraining from reporting late payments to credit rating agencies;
• Offering mortgagors additional time to complete trial loan modifications, and ensuring that late payments do not affect their ability to obtain permanent loan modifications;
• Waiving late payment fees and online payment fees;
• Postponing foreclosures;
• Ensuring that the closure of the mortgage servicer’s office does not disrupt services to borrowers; and
• Proactively reaching out to mortgagors via app announcements, text, email or otherwise to explain the assistance being offered to mortgagors.

The guidance also notes that efforts to assist mortgagors will not be subjected to examiner criticism.