July 2, 2020
Update on the Attorney General/Governor’s Mortgage Relief Agreement
On Monday morning, the MBA sent a draft of a Press Release and agreement that Attorney General Ellison and Governor Walz had drafted. The Attorney General and Governor were asking banks and credit unions to sign on to the agreement included in the Press Release. They had originally asked banks to sign on by noon on Monday, but they extended the deadline. The names of all the banks and credit unions that signed the agreement would be added to the Press Release. The ICBM had sent the Press Release to its bank members, too.
Today, the Attorney General and the Governor issued the final version of the Press Release and agreement. Click here to see it. Just four banks chose to sign the agreement, and twenty-seven credit unions chose to sign it. Every bank that we heard from said that they have been working with their borrowers affected by COVID-19 for months, and they remain absolutely committed to doing so going forward. However, they did not want to sign this specific agreement.
The MBA wanted to ensure that people reading the AG/Governor’s Press Release fully understood that the small number of banks listed in the release did not mean that only a few banks are helping their customers. Therefore, just a few minutes after their Press Release came out, the MBA issued our own Press Release. Click here to see the MBA Release. It is a very positive statement that communicates the good work the banks have done, and it affirms the industry’s commitment to continue that good work into the future. It also stresses that banks have multiple options for providing assistance to borrowers. The banks will identify the relief option that works for individual borrowers, rather than committing to provide one relief option to every borrower.