[POWER MORTGAGE]
THE BANK OF AMERICA WILL ALLOW BORROWERS TO
PAUSE THEIR MORTGAGE PAYMENT
W
hile the corona scare has created an impossible situation for the lenders, mortgage relief is coming in fast and furious. Mid last month, the Department of Housing and Urban Development, Fannie Mae and Freddie Mac announced that they will be suspending foreclosures and evictions for at least 60 days. Following this announcement, the state of New York declared that certain borrowers in the state could forgo their mortgage payments up to 90 days. Joining the move was one of the nation’s biggest banks, the Bank of America, announcing that borrowers who are experiencing financial hardships due to the virus can pause their mortgage payments. “We’re going to continue to provide convenient access to the important services they count on, and the additional assistance and support they need during this difficult period,” Dean Athanasia,
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president of the consumer and small business at Bank of America, said in a statement. Included among the support option is the ability for the customers to defer mortgage payments. The bank says that the mortgage and home equity customers can make requests to defer their payments while the crisis rages. These payments will then be added to the end of their loan. Simply put, right now, borrowers can put a break on their payments but eventually, they will have to make those payments. According to the bank, payment deferral will be on a case-to-case basis and can be extended on a month-to-month term. These policies only apply to the loans held by the Bank of America, not the loans that are backed by Fannie Mae or Freddie Mac or the Federal Housing Administration. The mortgage holders will have to request for the relief directly from through the bank. Up until now, there is no formal word on how many payments can be waived or for how
long. According to the bank, there will be no negative credit bureau reporting for up-todate clients. It should also be noted that pausing on mortgage payments Is not the only step that the bank has taken for its 66 million consumer and small business clients, the bank has also paused on the foreclosure sales, eviction and repossessions. “This is a real-life benefit,” Andrew Cuomo, New York Governor said in a press conference. “People are under tremendous economic pressure. Making a mortgage payment can be one of the No. 1 stressors. Eliminating that stressor for 90 days—I think—will go a long way.” The bank, apart from pausing
THE POWER IS NOW MAGAZINE | APRIL 2020
