California's Mortgage Relief Program Still Accepting Applications

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Are your credit union's members behind on their mortgage payments? They may qualify for California Mortgage Relief, a $1 billion mortgage assistance program that could help qualified homeowners get caught up on housing payments.

The program is free, and the funds do not need to be repaid. It grants relief to potentially eligible homeowners who have fallen behind on housing payments or reverse mortgage arrearages during the COVID-19 pandemic. When announced in January, the California Mortgage Relief Program was estimated to help 20,000 to 40,000 struggling homeowners.

Your credit union’s members can scroll down on the program’s website to explore eligibility options. If eligible, they can apply through the application portal.

Program funds are reserved for homeowners in socially disadvantaged and underserved communities often hit hardest by the pandemic. Californians at or below 100 percent of their county’s area median income — and who own a single-family home, condo or manufactured home (permanently affixed) and faced a pandemic-related financial hardship after Jan. 21, 2020 — may be eligible.

Past-due housing payments will be covered in full (up to a maximum of $80,000 per household) with a direct payment to qualified homeowners’ mortgage servicers. The financial support is provided as a one-time grant that qualified homeowners will not have to repay so they can get caught up and have a fresh start. Funding for the program is allocated through the national American Rescue Plan Act’s Homeowner Assistance Fund.

A detailed description of the program can be viewed here. You can also read Gov. Gavin Newsom's announcement here.

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