HARTFORD, Conn.–The state of Connecticut said dozens of banks and credit unions have agreed to extend their participation in the CT Mortgage Relief Program.
As CUToday.info reported earlier, the program launched in March and is meant to provide relief to consumers who are facing financial hardships due to the COVID-19 pandemic. It was set to expire May 31, but has been extended through July 30, 2020.
“While the state continues its progress towards safely re-opening, Connecticut residents continue to be impacted by the economic fallout of the pandemic” said Gov. Ned Lamont. “By extending the Connecticut mortgage relief program through July 30, 2020 credit unions and banks have demonstrated their commitment to help their members and customers through this crisis. I am grateful for their participation in this program.”
Provisions of Program
The program will extend the following provisions through July 30:
- 90-day grace period for all mortgage payments: Participating financial institutions will continue to offer mortgage-payment forbearances of up to 90 days, which will allow homeowners to reduce or delay monthly mortgage payments.
- The institutions will continue to provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation; confirm approval and terms of forbearance program; and provide the opportunity to extend forbearance agreements if faced with continued hardship resulting from COVID-19.
- Relief from fees and charges: Through July 30, 2020, participating financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals.
- No new foreclosures for 60 days (through July 30, 2020): Financial institutions will not start any foreclosure sales or evictions.
- No credit score changes for accessing relief: Financial institutions will not report derogatory information (e.g., late payments) to credit reporting agencies but may report a forbearance, which typically does not alone negatively affect a credit score.
The agreement means that "participating banks and credit unions will continue to not initiate any new foreclosures, foreclosure sales and evictions for another 60 days. It also extends the relief on certain fees until that date."
The mortgage relief program, applies only to mortgages held in portfolio by banks and credit unions.