Governor Gavin Newsom has announced that four of the nation's largest banks have just agreed to suspend residential mortgage payments temporarily. Wells Fargo, US Bank, CITI ,and JP Morgan Chase will waive payments for people due to the novel coronavirus. In addition 200 state charter banks and credit unions will also honor their commitment to easing the public's stress.
This announcement has been made after more than 1 million California citizens have filed for unemployment benefits due to the statewide "stay-at-home" mandate. The order requires all nonessential businesses to shutdown as officials work to prevent the spread of the virus. Businesses essential to the infrastructure of the city are permitted to remain open during this time. While visits to the grocery store, doctors office, and gas station are allowed, gyms, theaters, malls, and other nonessential businesses must close up shop.
Newsom says that every person is eligible to have their mortgage payments suspended regardless of their home's income level. Homeowners, however, are required to submit "some form of documentation," to receive the suspension.
It is noted that Bank of America has agreed to only suspend payments for one month. Newsom stated that he is urging BOA to consider extending that. period
"I hope they will reconsider and join those other banks that are willing to do the right thing,"