Albany, N.Y. — 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.
Certain bank fees, including overdraft penalties, will also be waived during the crisis, Cuomo said.
"Making a mortgage payment can be one of the number one stressors," he said. "Eliminating that stressor for 90 days, I think, will go a long way."
The economic effects of the outbreak are just beginning, but are likely to be titanic. Initial U.S. jobless claims jumped over 33 percent last week and the numbers will only get worse from here.
New York’s unemployment system crashed this week amid a surge of applications.
Entire industries are in virtual shutdown as the virus continues to spread. New York has ordered indefinite closures for businesses including gyms, casinos, movie theaters, bowling alleys, amusement parks and malls.
Bars and restaurant dining rooms are closed as well, although takeout can continue.
The state has also ordered nonessential businesses to reduce their in-person workforces by 75 percent.
Cuomo has said more restrictions could be coming.
New York now has over 4,100 confirmed cases of coronavirus. That’s the most in the nation.
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