COVID-19 Developments Impacting Credit Unions

eClosings and “no contact” closings
Texas has existing laws in place that allow a complete remote or “no contact” closing where the closing occurs digitally on a computer and there is no need for people to come together at a branch or title company for closing.  The Texas home equity laws requiring a closing to occur in the lender’s office, an attorney’s office or a title company office have not been lifted, so remote closings are not an option for Texas home equity loans.  If you are interested in setting something like this up for your credit union, please contact us and we can help explain your options.

Loan Forbearance
Fannie Mae and Freddie Mac have announced borrower assistance for borrowers affected by COVID-19.  Relief options are available for those with job loss, income reduction, sickness or other issues.  More information on the Fannie Mae program can be found here.  If you are interested in implementing a similar forbearance/assistance program for your struggling members, please contact us and we can help in setting up the program.  Here is an example of what the emergency modification might look like for a a conventional loan and a home equity loan.

Foreclosures
Fannie, Freddie and the HUD have suspended foreclosures through the end of April.  Travis County has cancelled foreclosures for April and May.  Bexar County has cancelled the April foreclosure.  It is likely that there will be no foreclosures state-wide on the April 7 foreclosure date.  If you have a foreclosure scheduled, check with the county to see if foreclosures are suspended.

Document Recording Interruption

TLTA’s list of Texas County Recording Service Interruptions by County

Social distancing and government office closures is having an impact on real property recording.  Although there are currently limited closures, many offices have altered their standard procedure, including closing offices to walk-ins.  Please click the link above to how the counties your Credit Union operates in have been impacted.  This list is maintained by the Texas Land Title Association (TLTA) and is updated through user submissions and may not reflect the most recent status of a particular county.  We encourage our credit unions to verify they will be able to record their lien documents before closing a mortgage loan.

About BairdLaw, PLLC

OUR MISSION: Provide high quality legal service at a reasonable cost, resolve mortgage lending issues, assist with regulatory compliance and treat all parties professionally and respectfully.

OUR HISTORY: We have represented Credit Unions and other mortgage lenders with their mortgage lending needs for over 30 years.  Each of our employees is experienced, welltrained and dedicated to helping mortgage lenders.

OUR PRACTICE AREAS:

  • Mortgage Loan Document Preparation
  • Regulatory Compliance
  • Implementation of New Mortgage Loan Programs
  • Education and Training
  • Title Insurance
  • Resolution of Closing Issues