LANSING, Mich. — Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) Thursday announced the creation of the MiMortgage Relief Partnership.
Over 200 of Michigan's financial institutions to assist customers to ensure that no one experiencing financial hardship due to COVID-19 will lose their home during the pandemic.
This partnership will encourage options for consumers in need of assistance, regardless of financial institution.
“No one should have to worry about losing their home during the COVID-19 pandemic,” said Governor Gretchen Whitmer. “With the MiMortgage Relief Partnership, Michigan’s credit unions, banks, and lenders have stepped to the plate to help our residents who are suffering financial losses due to COVID-19 by providing a 90-day grace period for mortgage payments.”
Participating financial institutions have agreed that they will continue to work with their impacted residential mortgage loan borrowers in at least the following ways:
Providing affected borrowers with a 90-day grace period for all mortgage payments. Financial institutions will offer mortgage-payment forbearance for 90 days, allowing borrowers to reduce or delay their monthly mortgage payment. In addition, the financial institutions will:
- Provide a streamlined process for requesting forbearance for COVID-19-related reasons, supported with available documentation;
- Confirm approval of and terms of their forbearance program (which should include reasonable solutions for resuming payments at the end of the forbearance term); and
- Where appropriate, provide the opportunity for borrowers to extend a forbearance agreement if they continue to experience hardship due to COVID-19.
Providing relief from mortgage-related late fees and charges for 90 days. For affected borrowers who reach an agreement with their financial institution, financial institutions will waive or refund mortgage-related late fees for at least 90 days.
Foregoing new foreclosures for 60 days. Financial institutions will not initiate any foreclosure sales or evictions for 60 days for affected borrowers who reach an agreement with their financial institution.
Michigan borrowers experiencing a financial hardship due to COVID-19 are encouraged to reach out directly to their financial institution to learn the details of the relief options available to them, and to work out with the institution an agreement applicable to their loan.
Lenders who service federally-backed mortgages are subject to federal rules. Borrowers with these loans may wish to visit the CFPB guide to coronavirus mortgage relief options.
For more information on COVID-19 related mortgage relief, see: www.michigan.gov/MiMortgageRelief or call DIFS toll-free at 877-999-6442.
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