CARES Act for Individuals

The Coronavirus Aid Relief and Economic Security (CARES) Act was passed to help individuals through these times of uncertainty.

On Friday, March 27, 2020, the Coronavirus Aid Relief and Economic Security (CARES) Act was enacted, representing one of the largest emergency aid and economic assistance programs ever adopted. Although guidelines on the implementation of the CARES Act have not yet been shared with financial institutions, we recognize the importance of communicating information about the CARES Act, and how it could potentially assist you.

CARES Act Stimulus Checks

The CARES Act was passed into law on March 27, 2020. A part of this Act includes a direct payment to taxpayers. Your amount varies on a couple factors. Find out how much you should expect to receive.

Stimulus Payment Calculator

 

Other CARES Act Programs

Home Mortgage Forbearance and Foreclosure Moratorium

Information

  • Foreclosures prohibited for 60 days following March 18, 2020
  • Borrowers who have experienced a COVID- 19 related hardship may request up to 180 days forbearance

Benefits

  • Additional time to stay in your home despite a pending default
  • The opportunity to defer payments due to COVID-19 related hardship for 180 days and seek further forbearance after that for an additional 180 days
  • No penalties, interest or fees charged beyond those applicable if payments were made on time during the forbearance period
  • No fees or charges permitted for forbearance
  • Forbearance will not result in an adverse credit report

General Eligibility

  • Mortgages held by Fannie Mae and Freddie Mac, insured by HUD, VA, or USDA, or directly made by USDA held or insured by Federal agencies
  • Some states may have similar programs applicable to other mortgages

Next Steps

  • Federal regulations to establish program procedures Submit a request for forbearance

Multi-Family Mortgage Forbearance

Information

  • Up to 90 days of forbearance for multifamily borrowers with a federally backed multifamily mortgage loan who have experienced a financial hardship

Benefits

  • The opportunity to defer payments due to COVID-19 related hardship for 30 days with extensions for an additional 60 days
  • Not obligatory and forbearance can be revoked

General Eligibility

  • Mortgages on real property designed for five or more families that are purchased, insured, or assisted by Fannie Mae, Freddie Mac, or HUD
  • May not evict or charge late fees to tenants for the duration of the forbearance period

Next Steps

  • Federal regulations to establish program procedures Submit a request for forbearance
  • If you have a multi-family mortgage with us and would like to make a request for forbearance, please click here

Tenant Eviction Moratorium

Information

  • 120 Moratorium on evictions of tenants

Benefits

  • For 120 days beginning on the date of enactment of the CARES Act, landlords are prohibited from initiating legal action to recover possession of a rental unit or to charge fees, penalties, or other charges to the tenant related to such nonpayment of rent

General Eligibility

  • Applicable to properties with a mortgage insured, guaranteed, supplemented, protected, or assisted in any way by HUD, Fannie Mae, Freddie Mac, the rural housing voucher program, or the Violence Against Women Act of 1994

Next Steps

  • Federal regulations to establish program procedures

Suspension of Student Loan Payments

Information

  • Suspension of payments on student loans held by the Department of Education for 6 months

Benefits

  • Payments on student loans held by the Department of Education are suspended for 6 months
  • Interest will not accrue during the suspension period
  • No involuntary collection activities during the period of payment suspension

General Eligibility

  • Applicable to student loans held by the Department of Education

Next Steps

  • Federal regulations to establish program procedures

Credit Reporting Limitations

Information

  • Borrowers who agree to forbearance or modified payments reported as same status prior to the accommodation or current for credit reporting purposes

Benefits

  • This applies so long as the consumer has fulfilled requirements pursuant to the forbearance or modified payment agreement

General Eligibility

  • Protection is available beginning January 31, 2020 and ends 120 days after the date the national emergency declaration related to the coronavirus is terminated

Next Steps

  • Federal regulations to establish program procedures

Retirement Plan Loans and Distributions

Information

  • Availability of COVID-19 based hardship distributions from retirement plans
  • Increased loan availability from retirement plans
  • Minimum distribution requirements for most qualified plans are temporarily waived

Benefits

  • Eligible distributions in an amount up to the lesser or the participant’s plan balance or $100,000
  • Covered distributions not subject to 10% early withdrawal penalty but would be subject to income tax, payable over up to three years
  • Distributions may be repaid at any time during the three year period beginning on the day after the date such coronavirus-related distribution was received
  • The limit on total plan loans from the participant’s vested balance increased from $50,000 to $100,000
  • The due date of any plan loan made between the date of enactment of the CARES Act and December 31, 2020, may be delayed for one year

General Eligibility

  • Eligible retirement plans for distributions include employer sponsored plans and IRAs
  • Applicable to distributions from an eligible retirement plan made on or after January 1, 2020 and before December 31, 2020, to an individual (1) who is diagnosed with COVID-19, (2) whose spouse or dependent is diagnosed with COVID-19, or (3) who experiences adverse financial consequences as a result of being quarantined, furloughed, laid off, had hours reduced, or other factors as determined by the Secretary of the Treasury
  • Applicable to loans from an employer sponsored plan made during the 180-day period beginning on the date of enactment of the CARE Act

Next Steps

  • Federal regulations to establish program procedures
  • Plan loans are subject to the terms of your employer’s retirement plan, including any fees and application requirements
  • Any decision to take a distribution or loan from your retirement accounts should be discussed with your financial advisor