CA Gov. Gavin Newsom announces 90-day mortgage payment waiver for those impacted by COVID-19

Photo of Gavin Newsom
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California Gov. Gavin Newsom announced at a press conference Wednesday that four national banks have agreed to a 90-day residential mortgage payment waiver period for those impacted by COVID-19, colloquially known as the coronavirus.

U.S. Bank, JPMorgan Chase Bank, Citibank and Wells Fargo are the four banks that have agreed to the 90-day grace period. According to Newsom, Bank of America agreed to a 30-day period, but Newsom said he is hopeful that it will adjust this policy to meet the other four major banks. Many state and local banks, including East West Bank, have also set forth policies of residential mortgage payment forbearance and a moratorium on foreclosures.

“It is significant that we have some consistency,” Newsom said at the press conference. “It is significant that we don’t have a patchwork from one bank to another.”

According to Newsom, more than 1 million Californians have applied for unemployment benefits since March 13. He added that he recognizes that many Californians are struggling financially and said he is working with national, state and local leaders to mitigate some of the economic effects.

The state of California will continue to work with these financial institutions on policies for overdraft fees and ATM charges, according to Newsom, as well as measures that will help small businesses and nonprofits in the coming days.

“We need to focus on those faces, on their stories,” Newsom said at the press conference. “Not just the face of government, not just the face of businesses, but the faces of individuals day in, day out who are struggling.”

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Kate Finman is the university news editor. Contact her at [email protected] and follow her on Twitter at @KateFinman_DC.