Minnesota financial institutions to provide additional mortgage-relief options for homeowners amid COVID-19
In this Wednesday, May 27, 2020, file photo, Minnesota Attorney General Keith Ellison answers questions during a news conference in St. Paul, Minn., about the investigation into the death of George Floyd, who died May 25, while in the custody of Minneapolis police officers. Minnesota Gov. Tim Walz said Sunday, May 31, that he decided Ellison needs to lead the case.[AP/ John Autey, Pioneer Press]
Thursday, Minnesota Gov. Tim Walz, Lt. Gov. Peggy Flanagan and Attorney General Keith Ellison announced a commitment by 31 state financial institutions to provide mortgage-relief options to customers facing financial hardship caused by COVID-19 for homeowners not covered by the CARES Act.
Under this framework, participating financial institutions have agreed to offer a 90-day forbearance period for customers facing financial hardship caused by COVID-19. Customers accessing forbearance will not be required to make a lump-sum payment at the end of the forbearance plan, and no late fees or negative credit reporting will be allowed for customers in a forbearance plan.
The framework was negotiated by the attorney general’s and governor’s offices and was supported by the Minnesota Department of Commerce and Minnesota Housing.
“In the next few weeks, we may see a dramatic increase in the number of foreclosures and evictions. I am very pleased to announce that these banks and credit unions across Minnesota are working together to try to mitigate the damage,” Ellison said in a news release. “I thank each of the participating institutions for stepping up to the plate to help Minnesotans that are struggling because of COVID-19 and for recognizing that we are all better off when every Minnesotan has stable housing.”
“Minnesota families have been hit hard by the COVID-19 pandemic, and banks across the state have been working with their customers to help find solutions,” Walz said in a statement. “This initiative provides some added flexibility to Minnesotans who need help affording their mortgage payments during this unprecedented time.”
“The COVID-19 crisis falls hardest on Minnesotans who were already in crisis. For many low-income families or Minnesotans who have lost jobs or sources of income, their housing stability has been put at risk,” added Flanagan. “Mortgage relief is one way that we can provide some comfort and stability for those most impacted. I am thrilled that we can work in partnership to offer this relief.”