Relief options are coming to homeowners and borrowers who have had their entire lives turned upside down by the coronavirus outbreak from lenders.
Tens of thousands of Americans are facing unemployment as the coronavirus pandemic continues to affect daily life for cities and towns across the U.S.
Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy, NPR reported.
Under the plan, people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments. Forbearance programs do not mean you can just stop paying your mortgage.
It is important to note that this is not a forgiveness of debt or free money. Homeowners will work out a repayment plan once they recover financially.
“They need to contact their servicer — that is the lender that they send the check to every month,” Mark Calabria, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie explained to NPR radio.
CNBC complied information as to what some of the major banks and lenders are offering consumers whose finance was devastated by the coronavirus pandemic.
Bank of America: will refund overdraft fees, non-sufficient funds fees and monthly maintenance fees upon request for banking and small business customers, Will defer payments and issue refunds on late fees upon request for banking and small business customers, Will defer payments, with payments added to the end of the loan, for auto loans upon request Will defer payments, with payments added to the end of the loan, for mortgages and home equity lines of credit upon request ;Will pause foreclosure sales, evictions and repossessions.
Capitol One: Will offer financial relief options upon request, including fee suppression, minimum payment assistance and deferred loan payments
Citi: Will waive fees on monthly services and penalties for early CD withdrawal for banking customers Will waive monthly service fees, remote deposit capture charges and penalties for early CD withdrawal for small business customers Offer credit line increases and collection forbearance programs for credit card customers Offer a range of hardship programs through their service provider, Cenlar FSB, for eligible mortgage customers
Fifth Third Bank: Vehicle payment deferral program: offering payment deferral for up to 90 days and no late fees during the deferral period Credit card deferral program: offering payment deferral for up to three payments and no late fees during the deferral period Payment forbearance with no late fees for 90 days on mortgages and home equity lines of credit Small business payment deferral program: offering a payment deferral program for up to 90 days, no late fees and a range of loan modification options Will waive all fees on Fifth Third Fast Capital loans for six months Will waive fees for up to 90 days for a range of consumer and small business deposit products and services Will suspend any new repossession actions on vehicles for the next 60 days. Will suspend all foreclosure activity on homes for the next 60 days.
These are just a few of the many financial institutions offering relief to customer’s devastated financially by coronavirus. It is recommended you check in with your lender if your life has been turned upside down by this horrific pandemic