More than a year has passed since lenders and the federal government stepped in to help Americans stay in their homes amid the global medical and economic crisis caused by the Covid-19 pandemic. And many Americans still need this support.
According to the data, about 2.1 million homeowners are still on abstinence plans that are suspending mortgage payments. Latest data from the Mortgage Bankers Association… And about 1.8 million families are not on deferral, but as of April are at least 90 days overdue on their mortgage payments. the latest data from Black Knightthat tracks mortgage data.
At the moment, many are protected from eviction through a moratorium on the seizure of mortgaged property on loans secured by the federal fund.
But there is not enough time for these remedies. President Joe Biden extended federal foreclosure moratorium earlier this year, but it will expire on June 30, 2021. Many federally backed loan waiver programs will be discontinued this fall.
At the hearing on Wednesday, Senators asked the heads of several large banks what they are planning to do to help the Americans in this situation. Here’s what the heads of Bank of America, Chase and Wells Fargo said.
Wells Fargo plans to expand foreclosure protection beyond the current federal moratorium. “In terms of the loans we own, we have extended our moratoriums on foreclosures and evictions until the end of the year,” CEO Charles Scharf said at a hearing on Wednesday.
When CNBC Make It contacted the bank, a Wells Fargo spokesperson reiterated that, except in very specific cases, the bank had ceased all foreclosure activities by the end of 2021 and stopped all evictions by the end of 2021. year.
In addition, Wells Fargo supports Consumer Financial Protection Bureau proposal this will prevent creditors from starting foreclosure proceedings before 2022. “We support CFPB’s efforts to make this applicable to the entire industry, but we do not wait for them to make this decision when we service mortgages for ourselves,” said the spokesman.
Bank of America CEO Brian Moynihan said at the hearing that the bank’s suspension of all foreclosures will continue until the end of the quarter ending June 30. He added that the number of Bank of America customers who are still lenient and potentially at risk of being delinquent has dropped by 90%.
“The good news is that the number of delays has dropped significantly and the majority of clients have become active,” Moynihan said. “Even though the deadline will expire, we will continue to work with the few remaining clients to help them.”
A Bank of America spokesman said Wednesday that Moyininghan was referring to the June 30 moratorium deadline and said the policy applies to both loans held by banks and government-backed loans that are serviced by a bank.
JPMorgan Chase CEO Jamie Dimon did not comment on when Chase planned to renew the divestment and eviction during the hearing, but said about 90% of Chase’s clients also pulled out of tolerance programs.
Dimon’s written testimony has been clarified. that since the start of the pandemic, the bank has expanded capacity for approximately 2 million mortgage, car and credit card accounts.
A Chase spokesperson told CNBC Make It in an email that credit card assistance accounts for just over half of the 2 million customers affected, and that the difference is almost equally split between abstaining from home lending and car assistance.
Regarding the mortgage foreclosure moratorium, a Chase spokesman said the bank is continuing to align with various state and federal foreclosure moratoriums for all loans in its portfolio. At the federal level, this deadline is currently set at 30 June.
Chase declined to comment on whether the bank supported the CFPB’s proposed 2022 foreclosure rule, while Bank of America has yet to respond.
Morgan Stanley CEO James Gorman said his financial institution does not deal with consumer mortgages. Citi CEO Jane Fraser and Goldman Sachs CEO David Solomon were out of the question.