State officials question mortgage providers on Sandy-related payments

New York /
Mar.March 07, 2013 09:30 AM

New York state officials will investigate whether banks are pushing Sandy-hit homeowners to pay monthly payments despite agreeing to  postpone them after the storm hit, the Wall Street Journal reported.

Twelve banks — including major players such as Wells Fargo, Bank of America and J.P. Morgan Chase — had agreed to postpone payments for up to six months without demanding a lump sum at the end of the period, the state said. However, some homeowners had complained that the banks weren’t honoring their commitment. “While the total of complaints was small, a couple dozen, the impact on individual homeowners is huge. By focusing on this issue early, we can prevent it from hurting others,” David Neustadt, a state spokesman, told the Journal. 

The state is asking the banks how many owners requested and received the payment delays, known as forbearance, and how banks have reported during the delay period, in order to ensure that homeowners’ credit scores would not be adversely affected.

Pete Mills, a spokesman for the Mortgage Bankers Association, said in a statement that, “servicers are actively reaching out to make contact with borrowers and let them know that the initial 90 day moratorium is expiring or has expired, and that they should contact their servicers to decide if the they want to repay the forbearance amount in full, extend the forbearance period even further, or convert the forbearance amount into an affordable repayment plan or a permanent loan modification.” [WSJ]  – Hiten Samtani


Related Articles

arrow_forward_ios
Multifamily market refis lead biggest outer-borough loans
Multifamily market refis lead biggest outer-borough loans
Multifamily market refis lead biggest outer-borough loans
Photo via NYCEDC
NYC floats $5B coastline extension in Lower Manhattan climate plan
NYC floats $5B coastline extension in Lower Manhattan climate plan
Vornado's Steven Roth and Donald Trump with 1290 Sixth Avenue (Getty, VNO)
Vornado, Trump top Manhattan’s largest loans in November
Vornado, Trump top Manhattan’s largest loans in November
(One Boerum Place)
Luxury rentals prove loan-worthy in outer boroughs
Luxury rentals prove loan-worthy in outer boroughs
Bromley Companies CEO Neal McGraw (Bromley, 122 Fifth Ave)
Microsoft’s Manhattan landlord scores $170M loan
Microsoft’s Manhattan landlord scores $170M loan
The Collective's Reza Merchant and 1215 Fulton Street in Bedford-Stuyvesant (NLA, The Collective)
Co-living startup The Collective to lose another Brooklyn development project
Co-living startup The Collective to lose another Brooklyn development project
Top October loans: Cash cows, big buys, foreclosure avoidance
Top October loans: Cash cows, big buys, foreclosure avoidance
Top October loans: Cash cows, big buys, foreclosure avoidance
Scott Rechler’s RXR gets mega-refi for Yonkers project that proved critics wrong
Scott Rechler’s RXR gets mega-refi for Yonkers project that proved critics wrong
Scott Rechler’s RXR gets mega-refi for Yonkers project that proved critics wrong
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...