Q: COVID 19 Reporting to Credit Agency and Negatively affecting borrower after being promised it would not be.
A lender reported to credit agency during COVID 19 Forbearance. It negatively affected a refinance and canceled closing. I was informed it would not be reported and would not negatively affect us in anyway since we are current. Did they break law reporting it and affecting my refinance that was already scheduled for closing?
A:
From the Consumer Finance Protection Bureau:
Credit reporting under the CARES Act
The recently passed Coronavirus Aid, Relief, and Economic Security (CARES) Act places special requirements on companies that report your payment information to credit reporting companies. These requirements apply if you are affected by the coronavirus disease pandemic and if your creditor makes an agreement (called an “accommodation” in the Act) with you to defer a payment, make partial payments, forbear a delinquency, modify a loan, or other relief.
How your creditors report your account to credit reporting companies under the CARES Act depends on whether you are current or already delinquent when this agreement is made.
If your account is current and you make an agreement to make a partial payment, skip a payment, or other accommodation, then the creditor is to report to credit reporting companies that you are current on your loan or account. This applies only if you are meeting the terms of the agreement.
If your account is already delinquent and you make an agreement, then your account will maintain that status during the agreement until you bring the account current.
If your account is already delinquent and you make an agreement, and you bring your account current, the creditor must report that you are current on your loan or account.
This CARES Act requirement applies only to agreements made between January 31, 2020 and the later of either:
120 days after March 27, 2020 or
120 days after the national emergency concerning COVID–19 ends.
Bruce Alexander Minnick agrees with this answer
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