A Little Beacon Blog has been pursuing this story for two weeks. We have made inquires to local, state-based banks to see if they were thinking of pausing billing - tacking these months of payments to future months. We received some positive answers, but nothing concrete to publish. Also note: it is not clear what this means for non-state issued banks. Like Quicken Loans (who we are with), who has been fabulous throughout our loan management process, but figuring out who to call (first) tomorrow to pursue this loan modification will take several deep breaths. Looks like this is a win in the direction of going with a local bank. :)

While this photo is not a directive to any one financial institution in particular, it was a billboard that we saw while on our daily drive-around as we drive my toddler into his nap. (He’s normally in daycare but we paused that in the name of #flattenthecurve… and it’s SO HARD to also substitute-teach two the older kids at home while the little one is running around chasing us, squirting us with cleaning supplies he finds!)

Back to the point. The main point. The point about how Governor Cuomo just issued a directive to banks to pause mortgage payments for those in financial hardship because of the coronavirus/COVID-19 outbreak. Which is all of us who just lost jobs. Part-time jobs. Gig jobs. Full-time jobs. Client jobs.

In Governor Cuomo’s own words, here is how this directive will work. The details are most likely being fleshed out, but here is the direction. Not being an economic expert here, I’m not sure that this will work because money needs money to keep churning. But am hoping that the invisible hand of both spending money with our local businesses (keeping membership payments in place, buying takeout from restaurants, buying from the websites of our Main Street boutiques, etc.) will help.

From Governor Cuomo’s Press Conference, March 19, 2020:

We're also going to take a bold action but a necessary action, offering 90-day relief of mortgage payments. Waiving payments based on financial hardship. Meaning, if you are not working. If you are working only part-time. We are going to have the banks and financial institutions waive mortgage payments for 90 days. That will be a real-life economic benefit. It will also be a stress reliever for many families.

Waiving these payments will not have a negative effect on your credit report. There will be a grace period for loan modification. We are not exempting people from the mortgage payments, we are just adjusting the mortgage to include those payments on the back end.

No late fees or online payments fee. Postponing or suspending any foreclosures during this time. And waiving those fees for ATMs and credit cards. This is a real-life benefit. People are under tremendous economic pressure. Making a mortgage can be a No. 1 stressor. Eliminating that stressor for 90 days I think will go a long way. We will reassess as the situation goes on, if that should be extended or not.

(Toward the end of the press conference, he added this): You're going to have time with your family. You're going to have time at home. In this busy, hurry-up world.

OK! Until tomorrow!