New Yorkers struggling financially amid the coronavirus outbreak will get relief from mortgage payments and protection from foreclosure, Gov. Andrew Cuomo said today.
Banks will waive 90 days’ worth of mortgage payments and are suspending or postponing foreclosures, Cuomo said during a press briefing in Albany
“This is a real life benefit,” he said. “People are under tremendous economic pressure.”
The mortgage payment waivers will be based on financial hardship and are aimed at New Yorkers who suddenly find themselves out of work or unexpectedly working part time, Cuomo said.
The waived payments won’t have a negative impact on borrowers’ credit reports. There will also be a grace period offered to allow New Yorkers time to work out new loan arrangements with banks, Cuomo said.
He also said the payments won’t be exempted or wiped way, but rather adjusted and moved to the back end of loans.
The directive includes:
- Waiving mortgage payments based on financial hardship;
- No negative reporting to credit bureaus;
- Grace period for loan modification;
- No late payment fees or online payment fees; and
- Postponing or suspending foreclosures.
Additionally, the Governor has asked DFS to instruct state chartered banks to waive ATM fees, late fees, overdraft fees and fees for credits cards to help lessen the financial hardship of the COVID-19 pandemic on New Yorkers.