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Consumer financial relief information and advisories

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.

Questions and answers on financial relief

How do I get mortgage relief and/or forbearance?

You should contact and work directly with your mortgage servicer to learn about and apply for available relief. Please note that financial institutions and their servicers are experiencing high volumes of inquiries.

How long will the forbearance last?

The terms of a forbearance will be agreed to between you and your mortgage service. Financial institutions will confirm approval of and terms of the forbearance program.

What effect will this have on my credit report?

Consistent with applicable guidelines, financial institutions will not report derogatory information (e.g., late payments) to credit reporting agencies but may report a forbearance, which typically does not alone negatively affect a credit score.

How long will these programs last?

It is still unclear how severe or how long the COVID-19 impacts will be. Financial institutions have committed to necessary relief and will be assessing the ongoing conditions and necessity of continuing relief.

What if my financial institution isn’t offering this relief?

At this time, JP Morgan Chase, US Bank, Wells Fargo and Citigroup, and over 200 state-chartered banks, credit unions are supporting these commitments. The state will welcome any other institution that would like to meet the moment and provide much-needed financial relief to Californians.

What if I already made a payment or was hit with a fee because of COVID-19?

These measures go into effect as of March 25, 2020.  

Is the mortgage relief available to businesses?

The relief is currently only available for residential mortgages.

What if my mortgage servicer is not communicative or cooperative?

You can file a complaint with the Department of Business Oversight (DBO) through their online complaint form at https://dbo.ca.gov/file-a-complaint. You can also get assistance by contacting the DBO Consumer Services Office at (866) 275-2677 or (916) 327-7585, and through email at Ask.DBO@dbo.ca.gov.

Licensee guidance from BCSH and the DBO:

The Business, Consumer Services and Housing Agency (BCSH) and the Department of Business Oversight (DBO) have issued guidance below to limit foreclosures and evictions of those experiencing financial hardships associated with closures and other steps taken to contain the coronavirus. 

Approved by [name] [month/year]

Last updated: May 26, 2020 @ 4:48 pm