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Banks Offering Deferment On Mortgage Payments During Coronavirus

 

If you’ve been financially affected by COVID-19, your bank may offer assistance by suspending foreclosures, providing deferral programs, and waiving late fees. In this time of uncertainty many lenders are offering additional support to their customers who have been affected by the crisis. If the pandemic has caused a significant loss of income that will prevent you from paying your mortgage, there are options available to you. Many of the leading loan servicers are offering short-term relief immediately by allowing you to temporarily suspend your mortgage payments. This is called a forbearance and is a pause in payments. After the forbearance period is over, however, any paused payments will need to be repaid. For many homeowners this could be a significant financial burden. After any forbearance period you will need to reevaluate the situation for a solution that works for you. Options available after forbearance include a repayment plan or loan modification.

Mortgage servicers typically collect payments on behalf of major mortgage investors like Fannie Mae and Freddie Mac. The servicers are working with federal agencies and housing authorities to make new programs available and banks are announcing new ways they can help their customers every day. Even if your bank hasn’t listed the information publicly or on its’ website, there still may be options available.

Below is a list of what some banks are offering to do for customers affected by the current health crisis.

Ally

Effective Wednesday, March 18, Ally is offering the following financial support initiatives:

  • Will defer payment for existing auto customers for up to 120 days without incurring late fees or finance charges 
  • Will give new auto customers the option to delay first payment for 90 days
  • Will defer payment for existing mortgage customers for up to 120 days without incurring late fees or finance charges
  • Will waive overdraft, expedited checks and debit card fees for existing bank customers for the next 120 days
  • Will waive fees on excessive transactions on savings accounts for existing bank customers for the next 120 days 

Bank of America

Effective Thursday, March 19, Bank of America announced it would do the following for customers with no negative credit bureau reporting for up-to-date clients:

  • 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 and issue refunds on late fees for small business loans upon request
  • 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 owned by Bank of America upon request
  • Will suspend foreclosure sales, evictions and repossessions

Capital One

  • Will offer financial relief options upon request, including limiting fees, providing minimum payment assistance and offering deferred loan payments

JPMorgan Chase

The bank has said it will offer additional assistance to those affected by coronavirus. Chase did not immediately respond to CNBC Make It’s request for specific programs it would be offering. 

Citi

Effective Monday, March 9, Citi will do the following for an initial 30 days:

  • 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

Ohio-based Fifth Third Bank is offering the following programs and initiatives: 

  • 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

Goldman Sachs

In an email to cardmembers on March 15, Goldman said it will offer the following: 

  • Will waive payment for March without interest for Apple credit card users who enroll in Apple’s customer assistance program
  • Will allow delayed payments without fees for Marcus customers for a month

Huntington Bank

Effective Tuesday, March 17, Huntington Bank will offer the following programs:

  • Consumer payment deferral program: will offer a payment deferral for up to 90 days with no credit bureau impact
  • Small business payment deferral program: will offer a payment deferral for up to 90 days with no credit bureau impact
  • Working to offer economic injury disaster loans for small businesses 
  • Will waive late fees on consumer loan payments through at least the end of March 2020
  • Will waive late fees on business loan payments through at least the end of March 2020
  • Will suspend any new repossession actions associated with vehicles, RVs or marine craft financed by Huntington through at least the end of March 2020
  • Will enact reduced requirements for customers who want to redeem their already repossessed vehicle to one payment plus repossession fee
  • Will suspend any new foreclosure actions, specific to residential properties, unless required by federal or government agencies through at least the end of March 2020

KeyBank

Effective Thursday, March 25, KeyBank will offer the following: 

  • Will allow existing customers to defer payments for 90 days on mortgages and home equity lines of credit upon request 
  • Will allow existing customers to defer payments for 90 days on student loans upon request 
  • Will allow existing customers to defer payments for 90 days on auto loans upon request 
  • Will allow existing customers to defer payments for 90 days on credit cards and lines of credit upon request 
  • Will allow small business loan customers to defer loan payments for 90 days upon request 
  • Will waive late or overdraft fees
  • Will waive penalties for early CD withdrawals
  • Will suspend repossessions of vehicles unless required by a federal or government agency
  • Will suspend residential property foreclosures unless required by a federal or government agency

KeyBank is also offering the following: 

  • Temporary assistance loan: a shorter-term unsecured personal loan up to $5,000 with a low interest rate and the potential for same-day approval

PNC

  • Will waive or refund fees associated with deposit accounts or lending products, including credit cards and mortgages
  • Will offer assistance programs for customers with consumer or business loans, credit cards or mortgages
  • Will offer emergency hardship loans at a “low rate” for qualified consumer customers and employees

Santander Bank

Effective Monday, March 23, Santander said it will offer the following:

  • Will temporarily suspend payments, as well as refund late payment and overdraft fees for bank customers
  • Will stop collections calls
  • Will suspend mortgage and home equity line of credit foreclosures
  • Will waive early withdrawal penalties on CDs and waive outgoing wire fees for consumers
  • Will increase ATM cash withdrawal amounts available
  • Will offer extensions and payment deferral accommodations for existing small businesses clients
  • Will offer credit card limit increases
  • Will expand payment deferrals, waive late charges and issue lease extensions for lessees unable to return their vehicles for existing auto loan customers 
  • Will defer first payment for 90 days for new customers financing their auto loans through Chrysler Capital and offer a 0% APR for 84 months on select 2019 and 2020 models available

TD Bank

In an email to CNBC Make It, the bank said it would offer the following: 

  • Will offer financial relief options upon request, including fee refunds, early penalty-free access to CDs and payment extensions

Truist (formerly SunTrust and BB&T banks)

Truist instituted a number of relief measures: 

  • Offers payment relief assistance for clients on consumer loans, personal credit cards, business credit cards and business loans
  • Will temporarily waive ATM surcharge fees
  • Will offer 5% cash back for qualifying purchases at grocery stores and pharmacies through April 15, 2020

U.S. Bank

  • Will retroactively waive credit card fees 
  • Will work to enhance skip-a-pay and payment deferral programs 
  • Will continue to offer regularly available services, including rush replacement of a credit or debit card, increased credit limits and fee waivers for those experiencing hardship

Effective Friday, March 13, U.S. Bank reduced the cost of the following loans: 

  • Simple Loan fees reduced to $6 per $100 borrowed (down from $12 with autopay)
  • Personal Loan reduced APR of 2.99% for amounts between $1,000 and $4,999 for up to 48 months 

Wells Fargo

  • Will offer fee waivers, payment deferrals and other expanded assistance for credit card, auto, mortgage, small business and personal lending customers who contact Wells Fargo directly
  • Will suspend residential property foreclosure sales, evictions and involuntary auto repossessions

 

The main caveat to remember is that you cannot assume you will get an extension or deferment. Banks are providing payment relief on a case-by-case basis so your lender needs to be contacted and explicitly told that you’ve been financially impacted by the virus. The attorneys at The Licatesi Law Group LLP are experienced in facilitating these discussions.

 

If you are suffering financial hardship and in need of payment relief, please contact:

Jeanine Oberster, Esq.

(516) 478-0205

[email protected]

Michael A. Licatesi, Esq.

516-478-0220

[email protected]

 

 

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