Wells Fargo, Other Lenders OK Mortgage Relief Due To COVID-19
SACRAMENTO (CBSLA) — Four of the five major national banks have agreed to a 90-day forbearance on mortgage payments for those affected by COVID-19, Gov. Gavin Newsom announced Wednesday.
Wells Fargo, US Bank, Citi and JP Morgan Chase have all agreed to waive mortgage payments for 90 days. Bank of America was the only one that did not commit to the 90-day forbearance. The bank has only committed to a 30-day forbearance, Newsom said.
State-charter banks and credit unions have also agreed to the 90-day forbearance. Newsom said it is important to have a coordinated relief effort for families instead of a patchwork of relief like what happened during the housing bubble collapse in 2008.
There is no income requirement for mortgage relief, but there needs to be evidence that the homeowners have been affected by COVID-19, Newsom said. But it won't be as laborious as it was during the housing crisis in 2008, he added.
More than 1 million Californians have filed for unemployment benefits since March 13. Under the stimulus package deal that was just reached, the federal government will add $600 on top of the state benefits, Newsom said.