We know the spread of COVID-19 is having a significant financial impact on many of our customers. At U.S. Bank, our goal is to support our customers through this difficult time and help them stay in their homes. We do not want concerns about making mortgage payments to add undue stress.
There is a lot of confusion and misinformation about mortgage assistance and how it works. Our goal is to provide accurate and timely information. Here are the top five questions and concerns we are hearing from our customers.
There are several mortgage assistance options available, including requesting a mortgage forbearance.
A forbearance is a temporary reduction or suspension of payments intended to give time to overcome a temporary financial hardship.
More details and information are listed here on our website.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers single-family homeowners a 180-day forbearance, or payment suspension, on a mortgage loan. If after the initial suspension, the hardship has not been resolved, an additional 180-day extension is available.
Customers can request forbearance from home either by accessing our online portal, or by calling us at 800-365-7900. They can also text “Mortgage Assistance” to 866-809-4182 to start a conversation about assistance options. No documentation or proof of hardship is required.
Rest assured, U.S. Bank is here to help every step of the way. We will provide dedicated, one-on-one support from a U.S. Bank personal relationship manager to every customer on a forbearance plan.
If circumstances change and customers can resume monthly payments, they may request to exit the plan early. They just need to reach out to their personal relationship manager and together they will determine the best option for repayment given their current financial situation.
Please find detailed information, including more frequently asked questions and other helpful resources, at usbank.com by selecting COVID-19 at the top of our homepage.
Forbearance is intended to help customers through a difficult financial period by suspending their payments temporarily.
There are programs available for customers that will not result in having to pay a lump-sum payment at the end of the forbearance.
We have had some customers ask why they can’t just defer payments and automatically add them to the end of the loan. We will work with each customer to design a plan that is right for their situation and may include long-term solutions that modify the loan or extend the loan term, which adds the suspended payments to the loan. The best solution will depend on the individual’s financial situation when the forbearance period has concluded.
Customers will be reported as current and on a forbearance plan to all credit reporting agencies, which does not negatively impact their FICO score. We cannot speak to how an individual lender will determine qualifications for a refinance. For additional information, please visit myfico.com.
We hope this information was useful and helped ease some of the concerns regarding mortgage forbearance options as we all continue to experience the implications of the COVID-19 pandemic.