“During these uncertain economic times, Americans shouldn’t have to worry about their credit scores as they work to make ends meet,” said Brown, the top Democrat on the Senate Banking Committee. Sherrod Brown, D-Ohio, and Brian Schatz, D-Hawaii, introduced a bill Tuesday to provide an immediate four-month moratorium on all negative credit reporting. “During this time of uncertainty, it is imperative that your agencies impose a temporary moratorium on foreclosures and evictions to protect the countless Americans who have been, or soon will be, impacted by this evolving public health crisis.” “Much like a natural disaster, COVID-19 has already caused untold health, social, and economic damage in the United States and across the globe,” the lawmakers wrote. They noted that policymakers instituted similar freezes in previous crises, including Hurricane Maria in 2017. They did not specify a duration for the moratorium.
In their letter Tuesday to various agencies, 106 House Democrats called for the foreclosure and eviction freeze on properties backed by Fannie Mae, Freddie Mac, HUD, the Department of Veterans Affairs, and the Department of Agriculture’s Rural Housing Service. Meanwhile, two Senate Democrats have introduced a bill providing a four-month pause in consumers getting penalized on their credit reports for missed payments. Just this week, over 100 Democrats in the House urged the Trump administration to establish a moratorium on foreclosures and evictions from properties owned or insured by government agencies. The agency will continue to monitor the situation going forward and “update policies as needed,” FHFA said. “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage, should reach out to their mortgage servicers as soon as possible,” Calabria said in a statement.įHFA had previously issued guidance urging borrowers affected by the coronavirus to reach out to their servicers about forbearance options. Agencies encourage banks to use their capital to boost lending.What else can the Fed do to blunt coronavirus impact?.
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