The CARES Act
Signed into law March of 2020, The Coronavirus Aid Relieve and Economic Security Act was a stimulus bill to assist with the economic issues resulting from COVID-19. On February 9, 2024, the Department of Veterans Affairs (VA) issued a circular that reiterates the options for disaster modifications and loan deferment and extends the options available for borrowers affected by COVID-19 through May 31, 2024. According to the circular, a servicer can provide a VA disaster modification without VA preapproval until May 31 regardless of the borrower's enrollment in a COVID-19 forbearance plan, COVID-19's impact on the default. The VA is allowing for disaster extend modifications to extend the loan's original maturity date up to 18 months, instead of the standard 12 months, if the loan is modified no later than May 31, 2024. Regarding requirements and restrictions, the circular will also grant servicers the flexibility to offer loan deferment ...