Greenspoon Marder Financial Services Newsletter, August 22, 2018

Aug 22, 2018

Puerto Rico – On August 15, 2018, the US Department of Housing and Urban Development issued Mortgagee Letter 2018-05 to update Loss Mitigation options for borrowers with mortgage loans insured by FHA and whose property and/or place of employment is located in the Presidentially-Declared Major Disaster Areas (PDMDAs) of Puerto Rico and the U.S. Virgin Islands, that the U.S. Department of Homeland Security’s Federal Emergency Management Agency (FEMA) has declared to be eligible for Individual Assistance (Affected Counties) as a result of Hurricane Maria.

According to HUD, because of the devastation of Hurricane Maria, “mortgage delinquencies remain significantly elevated”. Therefore, they are modifying certain loss mitigation options to assist borrowers in default providing greater alternatives for Disaster Loss Mitigation. The purpose of the Mortgagee Letter 2018-05 is to reduce foreclosures and minimize losses to the Insurance Fund. Mortgagee are allowed to implement the amended Loss Mitigation procedures effective immediately but no longer than September 15, 2018. The 30-day Disaster Foreclosure Moratorium is effective immediately and applies to foreclosures pending initiation or already in process.

The tendency of the PR Judicial system regarding pending foreclosure actions during these moratoriums, in which the foreclosure property is the borrower’s primary residence, has been to refer the parties to the Mediation Center, all in compliance with PR Law 184 of 2012. At the Mediation Center, the mortgagees have the opportunity to advise and follow up with borrowers regarding Loss Mitigation available programs.

Please reach out to your Greenspoon Marder LLP Financial Services Practice Group attorney for any further questions or concerns.

David Merkur, Partner l Rebecca Bratter, Deputy Managing Partner
Frances Asencio, Puerto Rico Counsel
Shirley Palumbo, Senior Counsel
Heather Gunsten, Supervising Compliance Attorney
Erin Kennedy, Director of Operations
Christina Merkur, Director of Financial Services Administration
Kristen Palumbo, Financial Services Director of Client Relations

About Greenspoon Marder

Greenspoon Marder LLP is a full-service law firm with over 225 attorneys and more than 20 office locations across the United States. With operations from Miami to New York and from Denver to Los Angeles, our firm attracts some of the nation’s top talent in key markets and innovation hubs. Our core practice areas include Real Estate, Litigation, and Transactional Services, complemented by the capabilities of a full-service firm. Greenspoon Marder has maintained a spot on The American Lawyer’s Am Law 200 as one of the top law firms in the U.S. since 2015, and our goal is to provide exceptional client service by developing a thorough understanding of each client’s business needs and objectives in order to provide strategic, cost-effective solutions.

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This Greenspoon Marder LLP Client Alert is issued for informational purposes only and is not intended to be construed or used as general legal advice nor a solicitation of any type. Please contact the author(s) or your Greenspoon Marder LLP contact if you have any questions regarding the currency of this information. The hiring of a lawyer is an important decision. Before you decide, ask for written information about the lawyer’s legal qualifications and experience.

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Greenspoon Marder Financial Services Newsletter, August 22, 2018

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