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Wells Fargo, Other Lenders OK Mortgage Relief Due To COVID-19

Gov. Gavin Newsom announcedvWells Fargo, US Bank, Citi and JP Morgan Chase have all agreed to waive mortgage payments for 90 days.

SACRAMENTO (CBSLA) –

Four of the five major national banks have agreed to a 90-day forbearance on mortgage payments for those affected by COVID-19, Gov. Gavin Newsom announced Wednesday.

Wells Fargo, US Bank, Citi and JP Morgan Chase have all agreed to waive mortgage payments for 90 days. Bank of America was the only one that did not commit to the 90-day forbearance. The bank has only committed to a 30-day forbearance, Newsom said.

State-charter banks and credit unions have also agreed to the 90-day forbearance. Newsom said it is important to have a coordinated relief effort for families instead of a patchwork of relief like what happened during the housing bubble collapse in 2008.

There is no income requirement for mortgage relief, but there needs to be evidence that the homeowners have been affected by COVID-19, Newsom said. But it won’t be as laborious as it was during the housing crisis in 2008, he added.

More than 1 million Californians have filed for unemployment benefits since March 13. Under the stimulus package deal that was just reached, the federal government will add $600 on top of the state benefits, Newsom said. — Alexander Nguyen, web producer

F H F A M o v e s t o P r o v i d e E v i c t i o n S u s p e n s i o n R e l i e f f o r R e n t e r s i n M u l t i f a m i l y P r o p e r t i e s,a n d S u s p e n d s F o r e c l o s u r e s a n d E v i c t i o n s f o r E n t e r p r i s e-B a c k e d M o r t g a g e sBURBANK, CA (March25, 2020) –To help keep renters in multifamily properties in their home and to support multifamily property owners during the coronavirus national emergency,the Federal Housing Finance Agency(FHFA)is announcing that Fannie Mae and Freddie Mac (the Enterprises) will offer multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus. The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance. The forbearance is available to all multifamily properties with an Enterprise-backed performing multifamily mortgage negatively affected by the coronavirus national emergency.“Renters should not have to worry about being evicted from their home, and property owners should not have to worry about losing their building, due to the coronavirus. The multifamily forbearance and eviction suspension offered by the Enterprises should bring peace of mind to millions of families during this uncertain and difficult time,”said Director Mark Calabria. “The Enterprises are working with mortgage servicers to ensure that these programs are implemented immediately so that property owners and renters experiencing hardship because of the coronavirus can get the assistance they need.”Additionally, tohelp borrowers who are at risk of losing their home, FHFAhas directed Fannie Mae and Freddie Mac (the Enterprises) to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage.Earlier this month, FHFA announced that the Enterprises would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.“This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency,”said Director Mark Calabria. “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible. The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”FHFA and the Enterprises will continue to monitor the impact of the coronavirus national emergency on the housing finance market and update our policies as necessary