In an effort to ease the burden of hardship that many American’s are facing during these difficult times, the State and Federal Government have introduced and enacted many programs to help those directly impacted by the COVID-19 pandemic. Certain financial institutions have also instituted COVID-19 relief programs of their own. Below are various programs that are currently in place at the NYS level and by specific financial institutions.
NEW YORK STATE MORTGAGE RELIEF PROGRAM
On March 19th, 2020 Governor Cuomo stated mortgage payments will be suspended for 90 days for borrowers facing financial hardships. These hardships consist of anyone losing their jobs or anyone working part time due to Covid-19. The Governor also stated that there will be no negative reporting to the credit bureaus at this time. Gov. Cuomo directed Department of Financial Services to order the banks to waive late fees, overdraft charges, ATM fees, and credit card fees. Foreclosures are now postponed or suspended due to Covid-19. The timeframe will be re-evaluated at a later date if needed to extend beyond 90 days.
At this time no action has been taken to postpone or suspend rent payments.
*Note: These rules apply only to New York based businesses, banks and mortgage companies. Any nationwide action will be addressed in the Federal stimulus package. Members should contact their mortgage companies and banks directly for specifics about COVID-19 relief programs.
For more information about the NYS Mortgage Relief Program, visit the Governor’s website at https://www.governor.ny.gov/news/governor-cuomo-signs-executive-order-mandating-businesses-require-office-personnel-decrease
NYS INSURANCE PAYMENT DEFERRALS
On March 27, 2020 Governor Cuomo announced that New Yorker’s experiencing financial hardship due to COVID-19 may defer paying life insurance premiums for a 90-day period.
Late payments will be payable over a one-year period. Additionally, consumers and small businesses experiencing Coronavirus-related financial hardship may defer paying premiums for property and casualty insurance for a 60-day period. This includes auto, homeowners, renters and other kinds of insurance. (No late fees will be assessed and there will be no negative impact to your credit.)
For more information on the NYS Insurance Deferral program visit https://www.governor.ny.gov/news/amid-ongoing-covid-19-pandemic-governor-cuomo-announces-completion-first-1000-bed-temporary
CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY (CARES) ACT -RELIEF PROGRAMS
As part of the CARES Act legislation recently passed, the following benefits apply to federal student loans through September 30, 2020:
- No federal student loan payment;
- No interest on your federal student loan payments; and
- No garnishment of wages, Social Security and tax refunds for student loan debt collection.
For non-federal student loans; interest has been temporarily suspended for two months without penalty. Borrowers need to contact their student loan lender and enroll in the forbearance program. No interest will accrue on the loan during the forbearance period.
For more information about student loan forgiveness programs and details of how these benefits work, contact your loan lender directly.
As part of the CARES Act legislation recently passed, home owners with federally funded mortgage loans (such as FHA or HUD) that are experiencing financial hardship related to COVID-19 can apply for mortgage relief that includes from 6 months up to 1 year forbearance on mortgage payments and a 60 day delay on foreclosure proceedings and foreclosure related evictions. Home owners should contact their lenders directly to find out specific information of how these programs work and the process to apply.