Key Highlights

  • The State of New York declared that some of its banks’ and lending institutions’ borrowers would be able to forego their mortgage payments for up to 90 days.
  • Bank of America just announced support options to, among others, defer mortgage payments.

Governor Anthony Cuomo announced that in addition to suspending foreclosures for 90 days, the State of New York is allowing mortgage payments to be deferred, based on financial hardship, for the same time period.

Cuomo called this decision a “bold but necessary” action that would offer “real-life economic benefit and be a stress-reliever for many families.” Such deferred payments are NOT exemptions…they will be adjusted to the back end.

Cuomo said, “If you are not working, or working only part-time, we will have banks and financial institutions waive mortgage payments for 90 days.” This moratorium would also apply to some 8.1M households who hold mortgages ensured by the FHA.

The Bank of America is also extending support for its consumers and small businesses who are “experiencing hardship from the impact of the coronavirus.” These deferred payments would, like those in the State of New York, be added to the end of their loan.

The bank’s additional steps to help households in need include…

  • payment deferral to be available on case-by-case basis and can be extended on a month-to-month term
  • no negative credit bureau reporting
  • consumer and small business deposit account clients can request refunds for overdraft fees, non-sufficient funds fees and monthly maintenance fees
  • consumer and small business credit card clients, small business loan clients and auto loan clients can request to defer payments, refunds on late fees

The Bank of America said that clients “…are encouraged to contact the bank’s client services team for assistance.”

 

Thank you to TheRealDeal and HousingWire.

Also read: 4 Things for Homebuyers to Consider in 2020, Offer Your Millennial Clients These Mortgage Tips, Will These Zip Codes Hold in 2020?