Some of the nation’s biggest lenders will suspend foreclosure activity to help borrowers remain in their homes for the holidays.
Wells Fargo (WFC), U.S. Bancorp (USB), PNC Financial Services Group (PNC), Bank of America (BCA), SunTrust (STI) and Citigroup (C) all said this week they plan to halt until after New Year’s evictions of borrowers whose homes have been foreclosed on for loans the banks’ own.
U.S. Bank, PNC and Citigroup will offer the moratorium from Dec. 17 through Jan. 2. Wells Fargo and SunTrust will start their suspensions two days later.
Wells Fargo and U.S. Bank will halt evictions and hold off on foreclosure sales nationwide, according to spokespeople for both banks, while PNC says it will suspend evictions.
B of A did not specify dates on which it will halt foreclosures, but spokesman Rick Simon said in an email “it is the bank’s policy to avoid foreclosure sales or displacement of homeowners or tenants around the Christmas holiday.”
“We hope this suspension provides families who are experiencing financial hardship some stability over the holiday season,” Saiyid Naqvi, chief executive officer of PNC Mortgage, said Monday in a news release.
The banks’ actions mirror moves made by Fannie Mae and Freddie Mac.
Fannie said Monday that from Dec. 19 through Jan. 2 it will halt evictions from single-family homes and two- to four-unit properties that have been foreclosed on, although foreclosure proceedings may continue. Freddie will offer a moratorium from Dec. 17 to Jan. 2.
Source: American Banker