(Bloomberg) --
Bank of America said it has agreed to allow 50,000 mortgage customers to defer payments for three months because they've lost income as a result of the pandemic.
The borrowers have all kinds of home loans, including some that are not federally backed, said Bill Halldin, a spokesman for Bank of America.
To qualify for the government forbearance program, passed last week by Congress as part of the stimulus package, homeowners must contact their lenders and request help. It's only for people who have a hardship because of the coronavirus, though it doesn't require them to present proof.
The new legislation allows borrowers with federally backed mortgages to stop making payments for as many as 180 days, with the possibility of extending that period. But it's not supposed to be a payment holiday. They'll have to make it up, interest and all.
Servicers have reported a surge in calls though some lenders like Bank of America are allowing borrowers to apply for forbearance online.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
