PROVIDENCE, R.I.–Rhode Island has become the most recent state in which many of the state’s banks and credit unions have agreed to provide borrowers with help as part of the “Financial Institution COVID-19 Relief Pledge.”
The pledge includes:
90-Day Grace Period for All Residential Mortgage Payments
“Financial institutions will offer, consistent with applicable guidelines, mortgage payment forbearances of up to 90 days to residential borrowers economically impacted by COVID-19,” according to the pledge. In addition, the institutions have agreed to 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 that have taken the pledge have agreed to not report derogatory tradelines (e.g., late payments) to credit reporting agencies, consistent with applicable guidelines, for residential borrowers taking advantage of COVID-19-related relief.
Moratorium on Initiating Foreclosure Sales or Evictions
For at least 60 days, financial institutions as part of the pledge will not initiate foreclosure sales or evictions, consistent with applicable guidelines.
No Fees or Charges
For at least 90 days, financial institutions will waive or refund at least the following for customers who have requested assistance.
The Participants
Most of the financial institutions in Rhode Island have taken the pledge, although two major banks, TD Bank and Chase, have not yet signed on.
Credit unions that are participating include Navigant Credit Union, Pawtucket Credit Union, Rhode Island Credit Union, Westerly Community Credit Union Wave Federal Credit Union, PGE Federal Credit Union Greenwood Credit Union, People’s Credit Union, Ocean State Credit Union and Blackstone River Federal Credit Union.