NJ Homeowners To Get Mortgage Help In Coronavirus Crisis

TRENTON, NJ — Five national banks and more than 40 New Jersey financial institutions have agreed to provide mortgage forbearance and protections to state residents affected by the shutdown of non-essential businesses amid the outbreak of the new coronavirus.

Gov. Phil Murphy said Citigroup, JPMorgan Chase, U.S. Bank, Wells Fargo, and Bank of America, along with federal and state-chartered banks, credit unions, and servicers joined in the agreement, which includes a 90-day grace period for mortgage payments, a waiver of late fees, and no negative credit reporting. The measures took effect Saturday.

"Millions of hardworking New Jerseyans are suffering financial losses through no fault of their own as a result of the economic downturn brought on by COVID-19," Murphy said. "With this initiative, we can ensure that no one loses their home during this public health crisis."

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During his Saturday news conference, Murphy said he used a similar initiative in California to work out the agreement. He issued a stay-at-home order that included the shutdown of all non-essential businesses on March 21, which combined with the restrictions on restaurants and bars eliminating dine-in options on March 16, has sent more than 155,000 New Jersey residents to the unemployment ranks. Read more: NJ Coronavirus Updates: Here's What You Need To Know

"I commend our private sector partners for doing their part to reduce financial uncertainty for New Jersey families," he said. More financial institutions are expected to sign on in the coming days. The New Jersey Bankers Association, CrossState Credit Union Association and the Mortgage Bankers Association of New Jersey have endorsed this initiative and are encouraging all their members to adopt these policies, Murphy said.

The stay-at-home order could "bleed" into May, he said Friday. The measures are in place to try to slow the spread of the coronavirus. On Saturday, the number of cases rose to 11,124 statewide, and 140 people have died, he said. Read more: Gov. Murphy: NJ Coronavirus Cases Top 11K, 32 More Deaths

Here are some of the details of the agreement. New Jersey residents who are struggling financially as a result of COVID-19 should contact their financial institution.

90-Day Grace Period for Mortgage Payments

Financial institutions will offer, consistent with applicable guidelines, mortgage payment forbearances of up to 90 days to borrowers economically impacted by COVID-19. In addition, those institutions will:

• Provide borrowers a streamlined process to request a forbearance for COVID-19-related reasons, supported with available documentation;
• Confirm approval of and terms of forbearance program; and
• Provide borrowers the opportunity to request additional relief, as practicable, upon continued showing of hardship due to COVID-19.

No Negative Credit Impacts Resulting from Relief

Financial institutions will not report late payments to credit reporting agencies, consistent with applicable guidelines, for borrowers taking advantage of COVID-19-related relief.

Moratorium on Initiating Foreclosure Sales or Evictions

For at least 60 days, financial institutions will not initiate foreclosure sales or evictions, consistent with applicable guidelines.

Relief from Fees and Charges

For at least 90 days, financial institutions will waive or refund at least the following for customers who have requested assistance:

• Mortgage-related late fees; and
• Other fees, including early CD withdrawals (subject to applicable federal regulations).

Please note that financial institutions and their servicers are experiencing high volumes of inquiries and may recommend using online services when available for the quickest service. Loans held by a financial institution may be serviced by another company.

Murphy also reminded residents and landlords that he signed a moratorium on removing people from their homes by an eviction or foreclosure proceeding while the order is in effect. Tenants cannot be asked to leave their homes for nonpayment of rent during this time.

"Your landlord cannot kick you out of your home" while the stay-at-home order is in effect, he said. He also warned landlords against raising rents, and said if they are receiving mortgage forbearance, they should offer the same financial patience to their renters.

"I thank the national lenders who were part of that agreement for working with us," Murphy said.

There is additional information on the state's website.