California has the largest amount of mortgage debt in the country and now, borrowers are receiving a break on their payments from five of the biggest banks in the country. Gov. Gavin Newsom revealed that Wells Fargo, US Bank, Citi, JPMorgan Chase and Bank of America plan to suspend mortgage payments, due to the COVID-19 pandemic.
While Wells Fargo, US Bank, Citi and JP Morgan Chase will allow a three-month deferral period, Bank of America is starting at a 30-day deferral period. According to the USA Today report, Newsom criticized Bank of America for limiting its deferral period to just 30 days.
"I thought the Great Recession was overwhelming, and we really had to react. This one is much bigger," said Diana Dykstra, CEO of the California-Nevada Credit Union League, according to the report. "People's health is on the line, it's deeper and broader than that crisis was. It was a housing crisis. This is a crisis for everyone."
To learn more about how big banks are working to suspend mortgage payments for California, click here.