GOVERNMENT OF THE UNITED STATES VIRGIN ISLANDS

OFFICE OF THE LIEUTENANT GOVERNOR

VIRGIN ISLANDS BANKING BOARD



TO All BANKS AND SERVICERS )

LICENSED AND DOING BUSINESS )

IN THIS TERRITORY ) ORDER NO. 4/2020

)

ORDER



WHEREAS, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), a $2.2

trillion stimulus package designed to mitigate the effects of the novel coronavirus disease

(COVID-19), was signed into law by President Donald Trump on March 27, 2020; and



WHEREAS, the CARES Act provides emergency assistance and health care response for

individuals, families and businesses affected by the 2020 coronavirus pandemic; and



WHEREAS, Title IV (“Economic Stabilization and Assistance to Severely Distressed Sectors of

the United States Economy”) of the Act provides, among other things, several consumer

protections in Sections 4022-4024: Foreclosure Moratorium and Consumer Right To Request

Forbearance; Forbearance of Residential Mortgage Loan Payments For Multifamily Properties

with Federally Backed Loans; and Temporary Moratorium on Eviction Filings; and



WHEREAS, the type of loans eligible for forbearance under sections 4022 and 4023 of the

CARES Act are “Federally owned and backed mortgage loans;” and



WHEREAS, the term “Federally backed mortgage loan” includes: (1) any loan which is secured

by a first or subordinate lien on residential property (including individual units of condominiums

and cooperatives) designed principally for the occupancy of from 1-4 families and (2) any loan

other than temporary financing such as a construction loan that is secured by a first or subordinate

lien on residential multifamily real property designed principally for the occupancy of 5 or more

families, including any such secured loan, the proceeds of which are used to prepay or pay off an

existing loan secured by the same property; and



WHEREAS, examples of federally owned or backed mortgages include loans owned or backed

by: U.S, Department of Housing and Urban Development (HUD); U.S. Department of Agriculture;

USDA Direct; USDA Guaranteed; Federal Housing Administration (FHA) (Includes reverse

mortgages), U.S Department of Veterans Affairs (VA); Federal National Mortgage Association

(Fannie Mae); and Federal Home Loan Mortgage Corporation (Freddie Mac); and



WHEREAS, the CARES Act requires servicers to notify borrowers in writing of their forbearance

option during the national emergency; and

Virgin Islands Banking Board Order

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WHEREAS, residential borrowers may request forbearance on a Federally backed mortgage loan,

regardless of the delinquency status of the loan, by submitting a request to the servicer and

affirming that the borrower is experiencing financial hardship during the COVID-19 emergency;

and



WHEREAS, by submitting a request to the servicer and an attestation of financial hardship due

to the coronavirus, a borrower may obtain forbearance for 180 days, plus up to another 180 days

providing the second request is received within the initial 180 days forbearance period; and



WHEREAS, the CARES Act also provides the servicer shall not charge any fees or penalties

beyond regular (non-default) interest accrued on the borrower's mortgage account during the

forbearance period; and



WHEREAS, borrowers with a federally backed multifamily mortgage loan that was current on

February 1, 2020, may orally or in writing request a 30-day forbearance and up to two 30-day

extensions as long as a request for an extension is made 15 days prior to the expiration of the

current 30-day forbearance period; and



WHEREAS, a borrower with a multi-family mortgage loan that receives a forbearance shall not

evict or initiate the eviction, charge any late fees, penalties or other charges for nonpayment of

rent to tenants during the forbearance period; and



WHEREAS, Section 4024 establishes a temporary moratorium on residential eviction filings for

tenants living in certain properties that are part of government programs or are financed by

federally backed mortgage loans regardless whether a borrower has requested a forbearance under

this Act; and



WHEREAS, borrowers may not require tenants to vacate the property until 30 days after the

landiord provides the tenant with a notice to vacate and such notice may not be issued until after

the expiration of the forbearance period; and



WHEREAS, multifamily borrowers who receive forbearance cannot for the duration of the

forbearance, evict or initiate eviction procedures against tenants for non-payment of rent or other

fees or charges or charge late fees, penalties or other charges to tenants for late payment of rent;

and



WHEREAS, notwithstanding anything else to the contrary herein, this regulation is not applicable

to, and does not affect any mortgage loans made, insured, or securitized by any agency or

instrumentality of the United States, any Government Sponsored Enterprise, or a Federal Home

Loan Bank, or the rights and obligations of any lender, issuer, servicer or trustee of such

obligations, including servicers for the Government National Mortgage Association.



WHEREAS, borrowers with mortgage loans that are not subject to the CARES Act may request

a 90-day forbearance, which is subject to the qualifications of the bank; and

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WHEREAS, as it relates to Foreclosure, the CARES Act imposes a 60-day moratorium on

foreclosures of Federally backed mortgages, beginning March 18, 2020; and



WHEREAS, the foreclosure moratorium provision of the Act does not apply to vacant and

abandoned property; and



WHEREAS, as it relates to Temporary Moratorium on eviction filing, the CARES Act also

provides that for a 120-day period beginning on March 27, 2020, the landlord of a “covered

dwelling” is prohibited from filing a legal action to recover possession of a covered dwelling from

the tenant for nonpayment of rent; and



WHEREAS, the landlord (borrower) is also prohibited from charging the tenant any fees or

penalties because the tenant has not paid rent or evict tenant until after expiration of the

Moratorium Period.



WHEREAS, a covered dwelling is defined as (1) a dwelling that is occupied by tenant pursuant

to a residential lease or without a lease or with a lease that is terminable under the state law and

(2) is in or on a covered property; and



WHEREAS, covered property means any property that participates in a “covered housing

program” as defined by the Violence Against Women Act or “rural housing voucher program”

under section 542 of the Housing Act of 1949 or has a federally backed mortgage loan or a

federally backed multifamily mortgage loan; and



WHEREAS, the CARES Act also aids businesses suffering economic hardship during the

Coronavirus (COVID-19) crisis; and



WHEREAS, Sections 1102 and 1106 of the CARES Act provide businesses the requirements of

the Paycheck Protection Program; and



WHEREAS, Section 1102 of the CARES Act temporarily adds a new product, titled the

“Paycheck Protection Program” to the U.S. Small Business Administration’s (SBA’s) 7(a) Loan

Program; and



WHEREAS, the Paycheck Protection Program is a loan designed to provide a direct incentive for

small businesses to keep their workers on the payroll; and



WHEREAS, the following entities affected by Coronavirus (COVID-19) may be eligible: (1) any

small business that meets SBA’s size standards; (2) any business, 501(c)(3) non-profit

organization, or tribunal business concern with greater than 500 employees or that meets the SBA

industry size standard if more than 500; (3) any business with a NAICS Code that begins with 72

that has more than one physical location and employs less than 500 per location; and (4)Sole

proprietors, independent contractors, and self-employed persons; and

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WHEREAS, the SBA Paycheck Protection Program will forgive loans if all employees are kept

on the payroll for eight weeks and the money is used for payroll, rent mortgage interest, or utilities;

and



WHEREAS, a business seeking to obtain this loan can apply through any existing SBA 7(a) lender

or through any federally insured depository institution, federally insured credit union, and Farm

Credit System institution that is participating in the program; and



WHEREAS, other regulated lenders will be available to make these loans once they are approved

and enrolled in the program; and



WHEREAS, every bank in the Territory is an SBA approved lender, and is thereby required to

accept and process applications for the Paycheck Protection Program, if it is a participating

member; and



WHEREAS, lenders may begin processing loan application on April 3, 2020 and the program will

be available through June 30, 2020; and



WHEREAS, 9 VIC §61, grants the authority to the Virgin Islands Banking Board to regulate and

supervise all banks and, to the extent of and with respect to business done at any branches

established in this Territory, all foreign banks “in such a manner as to secure the safe and sound

conduct of such business, to prevent unsound practices, and thus maintain the public confidence

in such businesses and protect the public interest.”



NOW THEREFORE BE IT RESOLVED THAT:



In accordance with the authority of the Virgin Islands Banking Board under Section 61 of Title 9

of the Virgin Islands Code, it is hereby



ORDERED that this Order extends to federally backed and non-federally backed

mortgages; and



FURTHER ORDERED that all banks and servicers in the U.S. Virgin Islands shall be

required to provide to all borrowers a disclosure form, which must be signed by the borrower

indicating their approval of the forbearance and, the terms of the forbearance, which should include

the forbearance period, when payment(s) will be due after the forbearance period expires and the

effect of the forbearance on the borrower's escrow account; and



FURTHER ORDERED that no borrower shall be required to pay in full immediately

after the termination of forbearance period expires the total amount due during the time of the

forbearance period; and



FURTHER ORDERED that a copy of this Order shall be served, by certified mail, return

receipt, upon:



Ms. Christiana C. Williams,

Virgin Islands Banking Board Order

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Community President



United Fidelity Bank, fsb d/b/a Bank of St. Croix

P.O. Box 24240



Gallows Bay



St. Croix, VI 00824-0240



Mr. James E. Crites,



President and CEO



Merchants Commercial Bank

4608 Tutu Park Mall, Suite 100

St. Thomas, VI 00802-1816



Ms. Oran C. Roebuck,



Senior Vice President & Division Manager

Virgin Istands Region



Banco Popular de Puerto Rico



P.O. Box 6580



St. Thomas, VI 00851



Mr. Valdamier Collens



Senior Vice President, Regional Executive

FirstBank Puerto Rico



11A and 11B Curaco Gade & Veterans Drive

P.O. Box 309600



St. Thomas, VI 00803



Ganish Kumar



Executive Vice President & Chief Operating Officer

Oriental Bank



254 Ave. Munoz Rivera



San Juan, Puerto Rico 00918



oh

3s day of the mont ApS 200 Thomas Virgittalands.

lhega nt pacl—



A. Roach, Esq. / 29

Lig vernor

Ch rs Virgin Islands Banking Board



Dated this

Virgin Islands Banking Board Order

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