On March 26, 2020 the CFPB released a policy statement in which it reiterated its guidance encouraging financial institutions to make “prudent efforts undertaking in good faith” to work constructively with exigent needs of borrowers adversely affected by coronavirus/COVID-19. While the Statement provided that the Bureau will be sensitive to the circumstances faced by entities as result of COVID-19 when determining whether to take enforcement action, the Statement went to clarify that it is a “non-binding general statement of policy articulating considerations relevant to the Bureau’s exercise of its supervisory and enforcement authorities.” Although the reason for this clarification was seemingly made to explain that the Statement was not subject to the normal rule making formalities, financial institutions should recognize the general nature of the statement and be diligent in efforts to comply with all germane regulations.
