As Connecticut enters its third week of coronavirus stay-at-home orders, more than 50 banks and credit unions have agreed to offer homeowners and businesses mortgage relief.
Gov. Ned Lamont announced March 31 that his administration reached an agreement with financial institutions, the Connecticut Bankers Association, and the Credit Union League of Connecticut.
More than 50 credit unions and banks statewide will participate, including Webster Bank, American Eagle Financial Credit Union, Liberty Bank, Bank of America, Nutmeg State Financial Credit Union, and People's United Bank.
Under the agreement, participating lenders will offer mortgage-payment forbearance of up to 90 days, allowing borrowers to reduce or delay monthly mortgage payments.
The lenders will also provide a streamlined process for requesting forbearance for coronavirus-related reasons, with the option for extended relief if hardship persists.
Late Fees Waived
Participating financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals for at least 90 days.
Additionally, no new foreclosure sales or eviction proceedings will be commenced for 60 days and all late or missed mortgage payments will not be submitted to the credit reporting agencies for 90 days.
Mortgage relief has been granted in states that have been similarly devastated by the pandemic, including New Jersey and California.
"I thank each of these financial institutions that will provide this relief and applaud their participation in this agreement," Lamont said.
"The way we are going to get through this crisis is by working together, and this is an example of how we are going to get that done."