On March 25, California Governor Gavin Newsom announced that he was successful in negotiating with financial institutions to provide some relief for the vast majority of Californians impacted by COVID-19.
"Millions of California families will be able to take a sigh of relief," said Newsom, with support from Citigroup, JPMorgan Chase, U.S. Bank, Wells Fargo, and nearly 200 state-chartered banks, and credit unions.
The Banks agreed to help the governor along the following framework:
1. Deferral of Mortgage Payments: By getting some banks to agree to a 90-Day Grace Periods for Mortgage Payments. The Institutions will provide borrowers a streamlined process to request this assistance, confirm approval of and terms of this program, and provide borrowers the opportunity to request additional relief due to continued hardship.
2. Credit Scores: There will be No Negative Credit Impacts. Financial institutions will not report late payments to credit reporting agencies, consistent with applicable guidelines, for borrowers taking advantage of COVID-19 related relief.
3. Halt all Foreclosures and Evictions: For at least 60 days, financial institutions will not initiate foreclosure sales or evictions, consistent with applicable guidelines. Nor can private property owners commence evictions on rental property they own.
4. No Late Fees, Overdraft Fees etc: The banks have agreed for at least 90 days, to waive or refund mortgage-related late fees and other fees like early CD withdrawal fees (subject to regulations) for customers who have requested assistance.
Click here for details on how to apply for relief. Please note that financial institutions and their servicers are experiencing high volumes of inquiries.