March 27, 2020
California Governor Agrees To Deal With Banks to Postpone Mortgage Payments
California Gov. Gavin Newsom announced Wednesday that homeowners in the state who pay mortgages will receive a 90-day waiver on mortgage payments.
JPMorgan Chase, Wells Fargo, Citi, and about 200 of the state’s charter banks and credit unions will issue waivers for 90 days. Newsom added that “unfortunately Bank of America did not publicly commit” to 90 days but that it would give a 30-day waiver.”
However, a Bank of America spokesperson told Business Insider that the bank is deferring mortgage payments on a monthly basis until the crisis is over.
Newsom said that the state lacked the regulatory power to force banks to suspend mortgage payments, but thanked the banks for recognizing that these are sensitive times for their customers and a that missed mortgage payment would only add to what is already a significant financial burden for some.
California is among the states that have been impacted the most by the coronavirus outbreak. There are currently more than 3,000 cases in the state and 68 deaths with both numbers expected to rise significantly.
“The worst days are still ahead,” Los Angeles Mayor Eric Garcetti said in a press briefing Wednesday. “We’ve taken actions earlier and swifter [than other cities], but no one is immune from this virus.”
In New York, where the virus makes up 50% of all U.S. cases, Gov. Andrew Cuomo also announced that mortgage payments would be suspended for 90 days.
“If you are not working, if you are working only part time, we’re going to have the banks and financial institutions waive mortgage payments for 90 days,” he said at a news conference Thursday. “That will be a real-life economic benefit. It will also be a stress reliever for many families.”
Cuomo also announced that he will be suspending ATM, credit card, and overdraft fees in the state.
The coronavirus outbreak has affected every industry from air travel to shipping. There are 37,200 cases in New York as of Thursday morning, a jump of nearly 6,500 from the day before.