Top CA banks temporarily suspend mortgage payments due to COVID-19

Residential mortgage payments for Californians affected by the coronavirus will be temporarily suspended stated Gavin Newsom, California’s governor. Over 1 million Californians have filed for unemployment benefits due to the fallout from the “shelter-in-place” COVID-19 order that shut down businesses throughout the state, leaving a record number of residents without work or income.

The top banks which include JP Morgan Chase, US Bank, Citi and Wells Fargo, as well as state chartered banks and credit unions, agreed to defer residential mortgage payments for at least 90 days, regardless of a homeowner’s income, as reported by the Washington Times and the Associated Press. Bank of America will also be participating in the deferral plan but agreed to only waive mortgage payments for 30 days with a possibility of extending the deferral based on how long the health crisis goes on.  

The program comes on the heels of the $2 trillion stimulus package that was recently approved by the federal government. Californians may also see additional help coming from state lawmakers who are considering a supplement to the federal package.