New Jersey governor, financial institutions agree to 90-day mortgage grace period

New Jersey Gov. Phil Murphy (D) announced that he and dozens of financial institutions have reached an agreement on a 90-day grace period for mortgage payments amid the coronavirus outbreak.

Murphy said the grace period, reached in a deal with Citi Bank, Chase, U.S. Bank, Wells Fargo, Bank of America and 40 other groups, would not downgrade people’s credit. The groups have also vowed to not initiate foreclosure cases or eviction proceedings for at least 60 days.

The deal builds upon an executive order Murphy signed last week mandating that New Jersey residents cannot be evicted during the health crisis.

“Together, a 90-day grace period and a moratorium of foreclosures and evictions means many New Jersey families can breathe easier, keep their heads above water, and have a place they can continue to call home,” said Murphy.

Together, a 90-day grace period and a moratorium of foreclosures and evictions means many New Jersey families can breathe easier, keep their heads above water, and have a place they can continue to call home.

— Governor Phil Murphy (@GovMurphy) March 28, 2020

The news comes as New Jersey grapples with a significant outbreak of COVID-19 – it has the second highest confirmed cases of any state in the U.S. with 8,825. Neighboring New York has the highest, with over 52,000.

New Jersey has already implemented a shelter-in-place order, and President Trump said Saturday he is considering putting in place an “enforceable quarantine” on travel for New York and parts of New Jersey and Connecticut.

The Hill has reached out to Murphy’s office for comment.