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COVID-19: Banking and Financial Services

Title Insurance Issues Relating to COVID-19: Lender Recommendations

This memorandum is in regard to some of the changes we are seeing in the title insurance industry due to COVID-19. While the issues and impact may vary slightly by county and by title company, this memorandum addresses the following three (3) recurring concerns:

  • Delays in recording and delay affidavits;
  • The requirement of a gap indemnity agreement to be signed at closing; and
  • Exceptions to title related to COVID-19.

Coronavirus Aid, Relief, and Economic Security Act: What Small Businesses and Lenders Need to Know

Summary

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act) is the largest financial assistance legislation ever enacted, and was signed into law on March 27, 2020.  It allocates $2 trillion for businesses, individuals, federal agencies, and state and local governments, and was designed to distribute capital quickly and broadly.

Be Proactive and Prepared Regarding Existing Loans

Banks must be proactive and prepared to assist their borrowers in the uncertain times ahead.  Here are several recommendations as to the things your bank can be doing to be proactive and prepared with respect to your loan portfolio.