Underwriting Requirements:   As a result of the federal and state foreclosure and eviction moratoriums, until further notice,  you are required to obtain prior written approval from Fund Underwriting to insure title or issue a policy based on a foreclosure action where the Certificate of Title or Writ of Possession was issued after March 18, 2020, but prior to the expiration of the CARES Act (now August 31, 2020) and/or Executive Orders 20-94, 20-121, 20-137 and 20-159 (now August 1, 2020).  Title to any property that is derived through a foreclosure initiated during the effective period of the CARES Act and/or Executive Orders 20-94, 20-121, 20-137 and 20-159, will not be insurable.

EXECUTIVE ORDER - ALL Florida Foreclosures & Residential Evictions:  Governor DeSantis also issued Executive Orders 20-94 as extended by Executive Orders 20-121 20-137, and now 20-159, consistent with the CARES Act, extending the foreclosure moratorium to ALL foreclosures and tolling residential evictions until August 1, 2020 but did not waive the borrower’s or tenant’s obligation to make scheduled payments.  Evictions of non-residential or commercial tenants are not prohibited.  Many Florida judicial circuits have also entered administrative orders which limit or prohibit foreclosure and eviction actions at this time.

CARES ACT – Moratorium on foreclosures and related evictions on federally backed residential mortgages: On March 27, 2020, Congress enacted the Coronavirus Aid, Relief and Economic Security Act of 2020 (“CARES Act”), which provides for financial relief due to the COVID-19 Virus Pandemic.  Section 4022 provides a moratorium on residential foreclosures for borrowers with federally backed 1-4 family mortgage loans and addresses the right of a homeowner to request a forbearance from payment on these loans.  The requirements only apply to federally backed mortgages which are loans insured or guaranteed by FHA, VA, USDA or loans that are owned or securitized by Fannie Mae or Freddie Mac.  The moratorium does not apply to vacant or abandoned property or private bank loans.  Under the Act, no mortgage servicer of any federally backed 1-4 family mortgage loan is permitted to do the following beginning March 18, 2020 and now further extended until August 31, 2020:

1. Initiate any judicial or non-judicial foreclosure process;
2. File a motion for foreclosure judgment or order of sale; or
3. Execute a foreclosure-related eviction or foreclosure sale.

Section 4022 also allows a borrower on a federally backed 1-4 family mortgage loan to request a forbearance from payment up to 180 days with the right to request an additional 180-day extension.  Section 4023 allows a borrower on certain federally backed multi-family mortgages to request forbearance for up to 30 days with two 30-day extensions.  During the term of forbearance, a tenant cannot be evicted or charged late fees. Section 4024 establishes a temporary moratorium on eviction filings for certain single and multi-family housing.  During the above referenced period beginning on March 27, 2020, a lessor cannot initiate an eviction for nonpayment of rent.  After the moratorium period, the landlord may not evict a tenant unless a 30-day notice is provided to the tenant.

Please direct any questions you may have regarding these procedures to underwriting.