Governor Lamont and Banking Commissioner Jorge Perez announced that over 45 banks and credit unions have agreed to extend their voluntary participation in the CT Mortgage Relief Program, which provides relief to consumers facing financial hardship due to COVID-19. The program, launched on March 31, 2020 and set to expire on May 31, 2020 will now run through July 30, 2020.
“While the state continues its progress towards safely re-opening, Connecticut residents continue to be impacted by the economic fallout of the pandemic” said Governor Lamont. “By extending the Connecticut mortgage relief program through July 30, 2020 credit unions and banks have demonstrated their commitment to help their members and customers through this crisis. I am grateful for their participation in this program.”
The program, launched on March 31, 2020, extends the following original provisions through July 30, 2020:
- 90-day grace period for all mortgage payments: Participating financial institutions will continue to offer mortgage-payment forbearances of up to 90 days, which will allow homeowners to reduce or delay monthly mortgage payments. In addition, the institutions will continue to:
o Provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation;
o Confirm approval and terms of forbearance program; and
o Provide the opportunity to extend forbearance agreements if faced with continued hardship resulting from COVID-19.
- Relief from fees and charges: Through July 30, 2020, participating financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals.
- No new foreclosures for 60 days (through July 30, 2020): Financial institutions will not start any foreclosure sales or evictions.
- No credit score changes for accessing relief: Financial institutions will not report derogatory information (e.g., late payments) to credit reporting agencies but may report a forbearance, which typicall or texty does not alone negatively affect a credit score.
This agreement means that participating banks and credit unions will continue to not initiate any new foreclosures, foreclosure sales and evictions for another 60 days. It also extends the relief on certain fees until that date. The mortgage relief program, applies only to mortgages owned by banks and credit unions, also known as “portfolio mortgages”.
“By voluntarily agreeing to extend their participation in this initiative, Connecticut banks and credit unions have shown us that they once again stand ready to assist their customers and members during difficult times. This initiative is designed to provide relief for residents of the state who are feeling the economic impacts of COVID-19. We are all in this together and our financial institutions have shown they are partners to help get us through” said Commissioner Perez.
Bruce Adams, President and CEO of the Credit Union League of Connecticut said “For almost 100 years, credit unions in Connecticut have relied on the collective ability of their members to support one another. As not-for-profit financial institutions, we leverage the collective strength of our members to provide flexible, creative, and compassionate assistance to the people and communities who need it the most. We applaud Governor Lamont for affirming our unique ability to help in times of need.”
“Connecticut banks are ready to continue to assist their customers. They understand that these are uncertain times and are ready to help ensure the financial well being of Connecticut residents” said Tom Mongellow, President of the Connecticut Banker’s Association. “When customers reach out directly to their bank, they will find a helpful and willing partner.”
For a list of participating financial institutions and a Q&A on the program, click here.
