The California Bankers Association Encourages Homeowners to Reach Out Regarding Mortgage Hardships
SACRAMENTO, Calif. – The California Bankers Association (CBA) released the following statement regarding homeowners who might experience difficulty making mortgage payments in light of the COVID-19 national emergency:
“California’s banking community stands ready to support its customers and communities through this challenging time. We strongly encourage any homeowners who may have difficulties making their mortgage payments to please contact their mortgage servicer as soon as possible. We understand that these are stressful times for our customers and want to encourage early outreach if anyone is experiencing financial hardships.
“Please know that there are important state and federal consumer protections in place to help distressed borrowers, specifically in California, where state law requires mortgage servicers to outreach and have conversations with borrowers to explore possible solutions and foreclosure prevention alternatives before the foreclosure process can begin.
“Additionally, yesterday, it was announced by the FHA and FHFA that they are implementing an immediate moratorium suspending evictions and foreclosures for the next 60 days on any HUD-backed properties, or loans backed by the government sponsored entities, Fannie Mae and Freddie Mac. Earlier in the month, FHFA announced payment forbearance to borrowers impacted by the coronavirus for up to 12 months due to hardship caused by the coronavirus. These actions should also provide important relief to homeowners with these types of mortgages.
“These are very challenging times for our nation, and we want to underscore our industry’s commitment to helping our customers and communities. “