ST. PAUL — A total of 31 Minnesota banks and credit unions will offer 90 days of forbearance to some homeowners facing financial hardship due to the coronavirus pandemic, state officials announced Thursday, July 2, and waive late fee and credit reporting policies for customers who qualify.
Until now, homeowners with federally backed mortgages were among the only borrowers who qualified for forbearance through the federal Coronavirus Aid, Relief, and Economic Security Act, or CARES. The plan announced by Gov. Tim Walz, Lt. Gov. Peggy Flanagan and state Attorney General Keith Ellison offers a shorter period of forbearance than what the federal government currently allows, but could offer relief to homeowners who otherwise missed out on it.
"The COVID-19 crisis falls hardest on Minnesotans who were already in crisis. For many low-income families or Minnesotans who have lost jobs or sources of income, their housing stability has been put at risk," Flanagan said in a news release. "Mortgage relief is one way that we can provide some comfort and stability for those most impacted. I am thrilled that we can work in partnership to offer this relief."
Rules of Minnesota's relief program, which Walz and Ellison's offices negotiated with the banks, went into effect on Wednesday, July 1. They allow for qualifying borrowers to extend their mortgage maturity dates and add reduced or missed payments to their overall lifetimes.
Lump sum payments will not be required once forbearance periods end, according to the news release announcing the program. Credit reporting penalties and late fees will be frozen for the duration of forbearance.
Interested borrowers should contact their local lenders to apply. Institutions participating in the program include:
- Accentra Credit Union
- Affinity Plus Federal Credit Union
- Anoka Hennepin Credit union
- Bremer Bank
- Central Minnesota Credit Union
- City & County Credit Union
- Dawson Co-op Credit Union
- Embarrass Vermillion Federal Credit Union
- Financial One Credit Union
- First Alliance Credit Union
- First Security Bank
- Foresight Bank
- HBI Employees Credit Union
- Heartland Credit Union
- Mayo Employees Federal Credit Union
- Members Cooperative Credit Union
- MidMinnesota Federal Credit Union
- Minnco Credit Union
- Minnesota Valley Federal Credit Union
- MN Catholic Credit Union
- Mower County Employees Credit Union
- North Memorial Federal Credit Union
- NorthRidge Community Credit Union
- Riverview Credit Union
- South Metro Credit Union
- TopLine Federal Credit Union
- Two Harbors Federal Credit Union
- US Bank
- Virginia Co-op Credit Union
- Wakota Federal Credit Union
- Wings Financial Credit Union