LOS ANGELES—Taking a page from credit unions’ playbook, California Governor Gavin Newsom announced commitments from major lenders to provide firestorm survivors with mortgage relief.
These institutions have committed to offer their customers who are impacted homeowners a 90-day forbearance of their mortgage payments, without reporting these payments to credit reporting agencies, and the opportunity for additional relief, Newsom’s office stated.
“After so much trauma, we hope this deal will provide thousands of survivors a measure of relief. These financial protections will enable residents to concentrate on taking care of their immediate needs rather than worrying about paying their mortgage bills. I thank each of the financial institutions that are offering this help for Californians recovering from this catastrophic firestorm.”
The commitments were made by the following banks: Bank of America, Citi, JPMorgan Chase, U.S. Bank, and Wells Fargo. Newsom’s administration said it is also engaging with other financial institutions, and collaborating with external stakeholders, such as the California Bankers Association, the California Credit Union League, and the California Mortgage Bankers Association, which have expressed their support for these relief efforts.
As CUToday.info has extensively reported, credit unions immediately stepped up, as soon as the fires developed, to provide support for their members, staff and communities. The wildfires have destroyed more than 13,000 structures and killed at least 27.
Newsom’s office said the five major banks will offer their qualified borrowers:
- 90-day mortgage payment forbearance periods, streamlined processes for requesting initial relief without submitting forms or documents, payment options that do not require immediate repayment of unpaid amounts (i.e., no balloon payments) at the end of the forbearance period, and the opportunity for additional relief
- Relief from mortgage-related late fees accruing during the forbearance period for 90 days
- Protection from new foreclosures or evictions for at least 60 days
- Institutions will not report late payments of forborne amounts to credit agencies