Banks and Servicers Agree To Mortgage Relief for Sandy Victims

A number of banks and mortgage servicers have agreed to provide relief for New Yorkers struck by Sandy last week, a statement released today by New York State Governor Andrew Cuomo's office said.

A number of state-chartered banks, including M&T Bank and New York Community Bank, along with mortgage servicers registered with the state (such as Citi Mortgage and Nationstar) agreed to provide the relief. The relief provisions vary depending on the institution, the governor's office stated. But most of the lenders who signed on have agreed to postpone foreclosures and late fees for 90 days, waive interest on a refinancing transaction that has been closed but not funded yet and, in some cases, give 90 days or more forbearance on mortgage payments for borrowers impacted by the storm.

[See Related: Social Media Helps Banks Communicate with Customers Affected by Hurricane]

The State's Superintendant of Financial Services Benjamin Lawsky also urged banks and servicers to consider altering or adjusting payments terms for affected borrowers.

Jonathan Camhi has been an associate editor with Bank Systems & Technology since 2012. He previously worked as a freelance journalist in New York City covering politics, health and immigration, and has a master's degree from the City University of New York's Graduate School ... View Full Bio