Banks, credit unions agree to mortgage relief plan

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By Paul Hughes, Republican-American

HARTFORD — More than 60 banks and credit unions this week agreed to offer mortgage relief to Connecticut residents and businesses facing hardships due to the COVID-19 pandemic.

Banking Commissioner Jorge Perez said more financial lenders are expected to participate in the agreement that the Lamont administration negotiated with the Connecticut League of Credit Unions and the Connecticut Bankers Association.

Participating banks and credit unions will be offering a forbearance of up to 90 days for mortgage payment for homeowners to allow them to reduce or delay monthly installments.

In addition, the institutions will:

  • 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.

Under the agreement, participating financial institutions will waive or refund mortgage-related late fees and other fees including early CD withdrawals for at least 90 days.

Financial institutions will also not start any foreclosure sales or evictions.

For those taking advantage of this relief, late or missed payments will not be shared with credit reporting agencies.

A list of participating banks and credit unions is available on the state Department of Banking’s website, portal.ct.gov/DOB.