COVID-19 CORONAVIRUS & CALIFORNIA FORECLOSURE UPDATES

 WASHINGTON, D.C. – Today, the Consumer Financial Protection Bureau (CFPB) issued a report that warns of widespread evictions and foreclosures once federal, state, and local pandemic protections come to an end, absent additional public and private action. Over 11 million families are behind on their rent or mortgage payments: 2.1 million families are behind at least three months on mortgage payments, while 8.8 million are behind on rent. Homeowners alone are estimated to owe almost $90 billion in missed payments. The last time this many families were behind on their mortgages was during the Great Recession.

“We have very little time to prevent millions of families from losing their homes to eviction and foreclosure,” warns CFPB Acting Director Dave Uejio. “At the CFPB, we are working hard to help homeowners and renters as the U.S. begins to turn a painful crisis, caused by the pandemic, into a robust recovery. We know small landlords are struggling, too, with many dipping into savings or using credit cards to make it through the pandemic. We want everyone—homeowners and renters, landlords, and mortgage servicers—to have the tools they need now to avoid unnecessary evictions and foreclosures.” more

By US DEPT OF TREASURY 

Policy Issues

 The Emergency Rental Assistance program makes available $25 billion to assist households that are unable to pay rent and utilities due to the COVID-19 pandemic.  The funds are provided directly to States, U.S. Territories, local governments, and Indian tribes.  Grantees use the funds to provide assistance to eligible households through existing or newly created rental assistance programs. 

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By Forbes

Michelle Black Contributor

Millions of individuals and families across the country are facing financial hardships during the coronavirus crisis. According to the Pew Research Center, as of late March, nearly half of Americans considered the pandemic to be a major threat to their personal finances. It’s understandable that people are concerned. And the situation is escalating: Between March 15 and April 4, nearly 17 million U.S. citizens filed for unemployment benefits. 

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By California Department of Business Oversight

The State of California is working to soften the financial impact of COVID-19 on residents who are struggling to pay their mortgage and bills. At Governor Gavin Newsom’s request, Citigroup, JP Morgan Chase, US Bank, Wells Fargo, and nearly 200 state-chartered banks, credit unions, and mortgage lenders and servicers have committed to providing relief for consumers and homeowners in California. more

By Danielle Bergstrom

On Monday the California Judicial Council approved emergency orders essentially halting most evictions and foreclosures through the summer.

The order is a welcome respite for many renters and homeowners struggling to pay their rent and mortgage this month due to job losses caused by the COVID-19 pandemic.  However, there is no rent forgiveness on the table — and renters are urged to learn their rights in these uncertain times. more

By Consumer Financial Protection Bureau

If you’re among those financially impacted by the coronavirus pandemic, you might be concerned about how to pay your mortgage or rent. Federal and state governments have announced plans to help struggling homeowners during this time. Read this to get information on what to do now, and what your options are for mortgage and rental relief.  more

Foreclosure Moratorium Policy

By JDSUPRA

In the face of the COVID-19 pandemic and the resulting economic downturn, housing advocates and lawmakers have called for a nationwide moratorium on foreclosures. On March 18, U.S. Department of Housing and Urban Development Secretary Ben Carson authorized the Federal Housing Administration (FHA) to impose an immediate foreclosure moratorium for the next 60 days for single-family homeowners whose mortgages are FHA insured. more

Wells Fargo, Citi, JPMorgan, and US Bank have agreed to a 90 day grace period for mortgage payments for those impacted by the Coronavirus.  

https://twitter.com/GavinNewsom/status/1242905395011538947?s=20 

By Nathan Rott

California has reached a deal with several financial institutions, including four of the country's five largest banks, to provide relief to homeowners affected by the coronavirus by suspending foreclosures and delaying mortgage payments, the governor announced Wednesday. more

Suspends all foreclosure and evictions for the next 60 days

WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson, in consultation with the Trump Administration and the Coronavirus Task Force, today authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days. These moratoriums are part of the continued effort by President Trump to address impacts to the financial well-being of America’s individuals, families, and businesses caused by Coronavirus (COVID-19). more