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4 major banks temporarily suspend mortgage payments amid coronavirus outbreak

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SACRAMENTO, Calif. (KRON) — One million Californians have filed for unemployment as the state remains under a mandatory stay-at-home order for COVID-19.

Governor Gavin Newsom Wednesday announced a break for homeowners.

California leaders secured a deal with four major national banks to temporarily suspend home mortgage payments for those affected by COVID-19.

Newsom announced Wednesday Wells Fargo, Citi, U.S. Bank and JP Morgan-Chase agreed on a 90-day grace period.

Another 200 smaller banks made similar commitments.

“Four of the five largest institutions committed to just that, unfortunately Bank of America did not commit to that, they committed to just 30 days,” Newsom said. “I hope they’ll reconsider and join those other banks that are willing to do the right thing.”

The agreement comes as unemployment claims in California Wednesday passed the one million mark since March 13.

Newsom applauded progress on the federal stimulus bill that would provide an additional $600 for approved claims on top of what the state could typically provide.

“I’m not naive to the magnitude of this crisis and I’m not suggesting the magnitude of this stimulus will meet the moment,” Newsom said. “I have strong points of view, there will need to be more in the future.”

Gov. Newsom said the state’s work with banks will continue on additional issues like ATM fees and overdraft charges.

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