California governor announces deal with most major banks to waive residential mortgage payments for 90 days

FILE - In this July 23, 2019, file photo, Gov. Gavin Newsom talks to reporters at his Capitol office, in Sacramento, Calif. California could become the first state with its own prescription drug label. Newsom announced Thursday, Jan. 9, 2020, he wants California to contract with generic drug companies to make prescription medications on behalf of the state so it can sell them to the public. He said the goal is to lower prices by increasing competition in the generic market. State lawmakers must approve the plan before it can take effect. (AP Photo/Rich Pedroncelli, File)

Associated Press

California Gov. Gavin Newsom

  • JPMorgan Chase, Wells Fargo, Citi, and US Bank will issue a 90-day waiver on residential mortgage payments in California, Governor Gavin Newsom announced on Wednesday.
  • Around 200 state charter banks and credit unions will also issue the waivers.
  • Bank of America will do so for 30 days, the governor said.
  • Newsom said he is currently working with the banks on accounting for ATM fees and overdraft charges and hopes to announce a solution soon.
  • Visit Business Insider's homepage for more stories.

Homeowners in California paying a mortgage to JPMorgan Chase, Wells Fargo, Citi, or US Bank will receive a 90-day waiver on mortgage payments, California Gov. Gavin Newsom said.

Around 200 of the state's charter banks and credit unions will also issue waivers for 90 days, Newsom announced during a Wednesday press conference.

Newsom said that "unfortunately Bank of America did not publicly commit" to 90 days, but will give a 30-day waiver.

"I hope they will reconsider and join those other banks that are willing to do the right thing," Newsom said.

A Bank of America spokesperson told Business Insider that "Bank of America is deferring mortgage payments on a monthly basis until the crisis is over."

Newsom noted that California lacks outright regulatory power over the four banks, and thanked them for "recognizing the sensitivity to their customers" and the impact on their credit ratings that a missed mortgage payment could have.

The governor also said that he is working with the banks to negotiate solutions for people paying bank charges like ATM and overdraft fees because of the economic fallout from the coronavirus.

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