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The State of California is working to soften the financial impact of COVID-19 on residents who are struggling to pay their mortgage and bills. At Governor Gavin Newsom’s request, Citigroup, JP Morgan Chase, US Bank, Wells Fargo, and nearly 200 state-chartered banks, credit unions, and mortgage lenders and servicers have committed to providing relief for consumers and homeowners in California.

Californians who are struggling with the COVID-19 crisis may be eligible for the relief detailed below after contacting their financial institution or debt servicer.

The DBO also encourages businesses and consumers to be extra vigilant of fraud, scams, and unlawful activities seeking to exploit the pandemic and associated financial uncertainties. The following consumer alerts detail situations to be aware of and how to protect yourself:

90-day grace period for all mortgage payments

If you are impacted by COVID-19, these financial institutions will offer, consistent with applicable guidelines, mortgage-payment forbearances of up to 90 days, which allow you to reduce or delay your monthly mortgage payment. In addition, they will:

• Give you a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation;
• Confirm approval of and terms of forbearance program; and
• Provide you the opportunity to extend your forbearance agreement if you continue to experience hardship due to COVID-19.

Relief from fees and charges for 90 days

For at least 90 days, financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals.

No new foreclosures for 60 days

Financial institutions will not start any foreclosure sales or evictions, consistent with applicable guidelines.

No credit score changes for accessing relief

If you are taking advantage of this COVID-19-related relief, late or missed payments will not be shared with credit reporting agencies and will not affect your credit score, consistent with applicable guidelines.

Privately held student loans

Under the new initiative negotiated by California and other states, students with commercially owned Federal Family Education Loan or privately held student loans who are struggling to make payments due to the COVID-19 pandemic may also be eligible for expanded relief. Such borrowers should immediately contact their student loan servicer to identify options that are appropriate to their circumstances.