Lenders won’t report late payments to credit bureaus! Hat tip to Susie:
SACRAMENTO – Governor Gavin Newsom today announced that financial institutions will provide major financial relief for millions of Californians suffering financially as a result of the COVID-19 outbreak.
“Millions of California families will be able to take a sigh of relief,” said Governor Newsom. “These new financial protections will provide relief to California families and serve as a model for the rest of the nation. I thank each of the financial institutions that will provide this relief to millions of Californians who have been hurt financially from COVID-19.”
Governor Newsom secured support from Citigroup, JPMorgan Chase, U.S. Bank, and Wells Fargo and nearly 200 state-chartered banks, credit unions, and servicers to protect homeowners and consumers.
Under the Governor’s proposal, Californians who are struggling with the COVID-19 crisis may be eligible for the following relief upon contacting their financial institution:
90-Day Grace Period for Mortgage Payments
Financial institutions will offer, consistent with applicable guidelines, mortgage payment forbearances of up to 90 days to borrowers economically impacted by COVID-19. In addition, those institutions will:
- Provide borrowers a streamlined process to request a forbearance for COVID-19-related reasons, supported with available documentation;
- Confirm approval of and terms of forbearance program; and
- Provide borrowers the opportunity to request additional relief, as practicable, upon continued showing of hardship due to COVID-19.
No Negative Credit Impacts Resulting from Relief
Financial institutions will not report derogatory tradelines (e.g., late payments) to credit reporting agencies, consistent with applicable guidelines, for borrowers taking advantage of COVID-19-related relief.
Moratorium on Initiating Foreclosure Sales or Evictions
For at least 60 days, financial institutions will not initiate foreclosure sales or evictions, consistent with applicable guidelines.
Relief from Fees and Charges
For at least 90 days, financial institutions will waive or refund at least the following for customers who have requested assistance:
- Mortgage-related late fees; and
- Other fees, including early CD withdrawals (subject to applicable federal regulations).
Click here for details on how to apply for relief. Loans held by a financial institution may be serviced by another company.
Please note that financial institutions and their servicers are experiencing high volumes of inquiries.
Link to Gav’s Press Release
Bank of America is included too:
https://www.marketwatch.com/story/big-banks-agree-to-suspend-mortgage-payments-in-california-for-those-affected-by-coronavirus-2020-03-25
Newsom criticized Bank of America for only agreeing to waive mortgage payments for one month. But Bank of American spokesman Bill Halldin said the company isn’t capping its offer at 30 days. It will consider delaying payments on a monthly basis that could extend beyond 90 days depending on the length of the crisis.
any protections for renters?
Let’s be clear. Lates won’t be explicitly reported or penalized but everyone knows there are levels of reporting and that no datum is discarded/ignored. Missed payments, delayed payments, forgiven payments, negotiated payments follow everyone everywhere.
It is a good thing to provide breathing room but understand there is no financial privacy or expiration period on your financial history.
The Federal Housing Finance Agency has instructed mortgage servicers to allow borrowers whose mortgages are owned by Fannie Mae or Freddie Mac to delay payments. This forbearance program allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.
Federal housing officials have also announced a nationwide eviction and foreclosure moratorium for borrowers of Fannie or Freddie mortgages, or borrowers whose loans are backed by the Federal Housing Administration — so-called F.H.A. loans. This includes foreclosures that are already in progress.
To find out if Fannie or Freddie own your mortgage, you can search your address on this federal government site.
https://www.makinghomeaffordable.gov/…/get-answers-find-out…
Source:https://www.nytimes.com/…/coronavirus-money-unemployment.ht…
For renters:
Gov. Gavin Newsom gave cash-strapped California renters 60 days to figure out how to pay the rent while facing work slowdowns or loss of income during the current pandemic.
Newsom signed an executive order Friday, March 27, banning all evictions through May 31 if a tenant is unable to pay his or her rent due to the novel coronavirus outbreak.
The order requires tenants to declare in writing to the landlord within seven days of the rental due date that they cannot pay all or part of their rent due to COVID-19.
Tenants are required to retain documentation showing they have suffered economic hardship due to the outbreak but are not required to submit it to the landlord in advance. The tenant also remains obligated to repay the full rent “in a timely manner” and can still face eviction after the moratorium is lifted.
https://www.ocregister.com/2020/03/27/newsom-orders-moratorium-on-rental-evictions-due-yo-coronavirus-through-may-31/