Governor Newsom Announces Major Financial Relief Package: 90-Day Mortgage Payment Relief During COVI
Governor Newsom announced that financial institutions will provide relief for vast majority of Californians suffering financially as a result of the COVID-19 outbreak. Californians financially impacted by the COVID-19 pandemic may receive up to 90-day grace periods to make mortgage payments, and participating financial institutions agree not to negatively impact credit reports as a result of accepting payment relief.
Governor Newsom stated that he has secured support from Citigroup, JPMorgan Chase, U.S. Bank, and Wells Fargo and nearly 200 state-chartered banks, credit unions, and servicers to provide debt relief to 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. The 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, the financial institutions will:
Provide Borrowers a Streamlined Process
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: (i) mortgage-related late fees; and (ii) other fees, including early certificate of deposit withdrawals (subject to applicable federal regulations).
Please following the following link to learn how to apply for relief: