March 19, 2020
Banking Commissioner Urges Mortgage Servicers to Work With Homeowners Facing Financial Hardship Due to COVID-19
HARTFORD — As many residents face uncertain economic times ahead, Banking Commissioner Jorge Perez issued guidance to Connecticut licensed mortgage servicers urging them to work with borrowers who are impacted by the COVID-19 outbreak.
“Not since 2008 have we seen such strains on our economy and on the household finances of hardworking Connecticut families. Given the potential impact to so many residents of our state, I am urging mortgage servicers to work with Connecticut homeowners, as the financial fallout deepens,” said Commissioner Perez.
Commissioner Perez urged mortgage servicers to discuss borrower’s ability to make loan repayments at this time to mitigate any current or potential foreclosure actions consumers may face. Servicers should consider waiving late fees, and inform homeowners of forbearance plans they offer and any other deferment options that may be available to consumers. He also requests that mortgage servicers consider providing guidance to their internal and external collection teams regarding the servicer’s policies at this time. The success of this effort and the ability for borrowers to benefit will be limited if employees, agents or other third parties of the servicers are not familiar or are not able to inform borrowers about possible accommodations. Read the full guidance here.
Matt Smith, 860-240-8105