Banks should suspend mortgage payments for 90 days, urged Arizona’s Attorney General Mark Brnovich.
The move would help people who have lost their jobs temporarily because of the spiraling economic problems caused by the COVID-19 pandemic.
“Arizonans who are not working or have had their hours dramatically reduced due to this public health crisis need to know that they will have a roof over their heads and the ability to provide for their families during this difficult time,” wrote Brnovich in his press release.
However, Brnovich’s announcement has no way to force banks to comply, but soon every state might.
The Trump administration is looking at forcing banks to suspend mortgage payments as part of a $1 trillion aid package to save the economy while fighting the pandemic.
Federal regulators through Fannie Mae and Freddie Mac mortgages have ordered lenders to reduce or suspend mortgage payments for those who no longer have an income. That’s about half of all home loans in the U.S. The relief could last for a year.
Bank of America has announced it will defer payments on mortgages, small business and auto loans for up to 120 days. The bank has also suspended all foreclosure sales, evictions and repossessions.
Wells Fargo is also providing help with fee waivers, payment deferrals and other relief for credit card, auto, mortgage, small business and personal lending to customers who contact them for relief.
These moves by U.S. banks mimic similar moves by banks around the world.