200+ Mich. mortgage lenders to provide aid to COVID-19-impacted borrowers
State officials Thursday said they have teamed up with Michigan's mortgage companies to help ensure their customers don't lose their homes because of the COVID-19 pandemic by giving them more time to pay home loans.
Gov. Gretchen Whitmer and the Michigan Department of Insurance and Financial Services said the "MiMortgage Relief Partnership" includes more than 200 financial institutions.
“No one should have to worry about losing their home during the COVID-19 pandemic,” Whitmer said in a statement. “With the MiMortgage Relief Partnership, Michigan’s credit unions, banks and lenders have stepped to the plate to help our residents who are suffering financial losses due to COVID-19 by providing a 90-day grace period for mortgage payments.”
Borrowers affected by the pandemic must first reach agreements with their financial institutions participating in the partnership, officials said.
Lenders in the partnership have agreed to work with pandemic-impacted customers and offer a 90-day grace period for all mortgage payments. They can also offer mortgage-payment forbearance for 90 days, allowing borrowers to reduce or delay monthly mortgage payments.
In addition, they will waive mortgage-related late fees and charges for at least 90 days, forgo new foreclosures for 60 days and refrain from reporting adverse credit scoring information for accessing relief.
“The strength of our financial system will be an important factor in how Michigan recovers economically from COVID-19,” Anita Fox, director of the Michigan Department of Insurance and Financial Services, said in a statement. “Through the MiMortgage Relief Partnership, financial institutions will continue to help customers find the solutions that best fit their needs, and to focus relief efforts on those most impacted by the crisis. Michigan residents who can meet their financial obligations can continue to do so, while those who need assistance will be able to work with their financial institutions to access relief.”
Officials said any Michigan borrowers experiencing a financial hardship due to COVID-19 should contact their financial institution directly to learn about available relief options and work out agreements on loans before they become delinquent.