Many banks and credit unions in Rhode Island have agreed to a minimum 60-day foreclosure moratorium. They also agreed to suspend mortgage payments for residential borrowers.
In Rhode Island, multiple banks and credit unions have signed a pledge, agreeing to suspend foreclosures and provide mortgage assistance to residential homeowners during the coronavirus (COVID-19) outbreak.
Foreclosure Moratorium
For at least 60 days, the various banks and other financial institutions (see below) won't initiate foreclosure sales or evictions of Rhode Island homeowners. The foreclosure moratorium is consistent with applicable guidelines, including those from the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, as well as FHA.
Mortgage Payment Relief for 90 Days
Most of the participating banks and credit unions have implemented a payment-deferral program, also known as a "forbearance," of up to 90 days for residential borrowers economically impacted by COVID-19.
During the process, the financial institutions will provide borrowers with:
- a streamlined way to request a forbearance due to coronavirus-related reasons (you'll probably have to provide some supporting documentation)
- confirmation of forbearance approval and terms of the forbearance program, and
- the opportunity to extend a forbearance agreement if you continue to experience financial hardship due to coronavirus.
But don't just stop making your mortgage payments. Contact your loan servicer to ensure that you qualify for the payment suspension.
No Fees, Charges, or Negative Credit Reporting
The financial institutions also agreed to waive or refund mortgage-related late fees and other fees, such as early CD withdrawals, for at least 90 days. In addition, the banks won't report derogatory tradelines, like delinquent payments, to the credit reporting bureaus if a residential borrower takes advantage of COVID-19-related relief.
Banks and Credit Unions Who Signed the Pledge
The following institutions signed the pledge committing to provide a foreclosure moratorium and payment help to affected borrowers:
- Bank of America
- Bank Rhode Island
- BankFive
- BankNewport
- BayCoast Bank
- Berkshire Bank
- Centreville Bank
- Citizens Bank
- Customers Bank
- Freedom National Bank
- HarborOne Bank
- Rockland Trust
- Santander Bank
- The Washington Trust Company
- Webster Bank
- Navigant Credit Union
- Pawtucket Credit Union
- Rhode Island Credit Union
- Westerly Community Credit Union
- Wave Federal Credit Union
- PGE Federal Credit Union
- Greenwood Credit Union
- People's Credit Union
- Ocean State Credit Union
- Blackstone River Federal Credit Union, and
- RI Housing.
Effective date: April 24, 2020