TRENTON, N.J.–Twenty-nine credit unions have signed on to participate in New Jersey Gov. Phil Murphy’s COVID-19 financial protection initiative, including mortgage payment relief.
The CrossState Credit Union Association reported it has been joined by the New Jersey Bankers Association and the Mortgage Bankers Association of New Jersey in endorsing the initiative and encouraging members to adopt the policies, which include a number of other financial protections.
The CSCUA said it will hold a webinar on the initiative on Wednesday, April 15 at 12:00 E.T. New Jersey Commissioner of Banking and Insurance Marlene Caride will outline the initiative, discuss why it’s important for credit unions to participate and answer any questions credit unions may have.
The Plan
Similar to initiatives in other states, the New Jersey plan offers:
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
- 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
- Other fees, including early CD withdrawals (subject to applicable federal regulations)
CUs Supporting Food Banks
A number of credit unions have announced donations to local food banks to provide assistance during the coronavirus pandemic. Among those CUs:
- In Waterford, Conn/, Charter Oak FCU said it is providing $35,000 in emergency grants to 14 food pantries and meal programs in New London and Windham counties
- In Albany, N.Y., CAP COM Federal Credit Union and its charitable giving arm, the CAP COM Cares Foundation, have announced a $50,000 donation to the Regional Food Bank of Northeastern NY. CAP COM’s $50,000 gift to the Regional Food Bank is in addition to the $450,000 slated for donation by the CAP COM Cares Foundation to hundreds of community organizations this year.
- In Laurel, Md., Tower FCU’s TowerCares Foundation has donated $75,000 to three local food banks. The Maryland Food Bank in Baltimore, the Capital Area Food Bank in Washington, and the Anne Arundel County Food Bank in Crownsville, Md. each received $25,000.
Elevations CU Matching Member Contributions
In Colorado, Elevations Credit Union said its members continue to help in their respective communities to provide support during the COVID-19 crisis. Members have donated $75,000 to date, and Elevations Credit Union is matching these donations for a total of $150,000 that will be granted this week through the Elevations Community Relief Fund, it said.
“These funds will work to mitigate the crisis across the northern Front Range in three areas: Northern Colorado, Boulder County and Southeast of Boulder County,” the credit union said. “Funds are being distributed to support urgent financial and other needs of medical staff and first responders, and those most severely affected by the crisis.”
Among the organizations that have received funds:
Northern Colorado. UC Health Northern Colorado Foundation, and the Health Care Worker Emergency Relief Fund, which provides financial assistance to staff facing financial hardships, needing childcare or needing mental health support.
Boulder County. Boulder Community Health Foundation, which is supporting staff facing unanticipated financial challenges and removing barriers to providing the best treatment for COVID-19.
Southeast of Boulder County. Broomfield Community Foundation and its Disaster Relief Fund for first responders
Northern Colorado. Community Foundation of Northern Colorado and its Northern Colorado COVID-19 Response Fund will provide funding to local nonprofit organizations that work with people disproportionately affected by the consequences of COVID-19.
Boulder County. Community Foundation. Boulder County and its COVID-19 Response Fund Boulder County, which will ensure essential services for community members who find themselves at the intersection of being most vulnerable to the virus and most impacted by inequity.
Longmont Community Foundation and its Neighbor to Neighbor COVID-19 Relief Fund, which will provide financial resources to charitable organizations in Longmont and the St. Vrain Valley area that are involved in supporting vulnerable populations that have been affected by the outbreak.
Southeast of Boulder County. Broomfield Community Foundation and its Disaster Relief Fund, which will fund local nonprofit service providers for basic needs provision to the most vulnerable populations.
Westminster Legacy Fund. This Coronavirus Relief Fund will purchase food for high-risk families to be delivered safely by volunteers, and offer support local food banks and pantries.