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Governor, Banking Commissioner announce 60-day extension to CT Mortgage Relief Program

Connecticut

HARTFORD, Conn. (WTNH)– Governor Ned Lamont and Banking Commissioner Jorge Perez announced a 60-day extension to the CT Mortgage Relief Program on Thursday.

The program will provide relief to people who are facing financial hardships due to the coronavirus pandemic.

The CT Mortgage Relief Program was launched on March 31, 2020 and was set to expire on May 31, but over 45 banks and credit unions have agreed to extend their participation so that the program can now run through July 30.

“While the state continues its progress towards safely re-opening, Connecticut residents continue to be impacted by the economic fallout of the pandemic. By extending the Connecticut mortgage relief program through July 30, 2020 credit unions and banks have demonstrated their commitment to help their members and customers through this crisis. I am grateful for their participation in this program.”

Governor Ned Lamont

According to a press release from the Department of Banking, the following provisions are extended:

  • 90-day grace period for all mortgage payments: Participating financial institutions will continue to offer mortgage-payment forbearances of up to 90 days, which will allow homeowners to reduce or delay monthly mortgage payments. In addition, the institutions will continue to:
    • Provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation;
    • Confirm approval and terms of forbearance program; and
    • Provide the opportunity to extend forbearance agreements if faced with continued hardship resulting from COVID-19.
  •  Relief from fees and charges: Through July 30, 2020, participating financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals.
  • No new foreclosures for 60 days (through July 30, 2020): Financial institutions will not start any foreclosure sales or evictions.
  • No credit score changes for accessing relief: 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.

The mortgage relief program applies only to mortgages owned by banks and credit unions, also known as “portfolio mortgages.”

Lamont said he hopes there is no need for an extension past July.

“I hope not. I hope the economy’s getting going and people are slowly getting back to work. As you heard, the PPP, a lot of the other protections put into place run up until June 30 or
July 31.”

For a list of participating financial institutions and more details, click here.

On Thursday, Lamont also announced the Connecticut Municipal Coronavirus Relief Fund Program, which will help municipal governments receive state reimbursements for expenses to fight the virus.

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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