Chicago Housing Solidarity Pledge to Aid Landlords

Chicago Housing Solidarity Pledge to Aid Landlords

Crystal SmithPro Member
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Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes

Realize most of the Chicago BP investors are keeping up with the news but just in case here's a recent announcement made by the Mayor's office working with the major banks in the area to provide relief to landlord mortgage holders whose income is affected by COVID-19. 

Under the terms of the pledge, housing lenders affirm they may provide the following for eligible mortgage holders who demonstrate a significant financial impact from the pandemic:

  • Grace Period for Mortgage Payments: Offer deferred payments with repayment terms that avoid immediate repayment at the end of the deferral period.
  • Suspension of Foreclosures: Provide relief from foreclosure filing until May 31, 2020.
  • Neutral Reporting to Credit Agencies: No reporting late payments to credit reporting agencies, consistent with applicable guidelines, for residential borrowers taking advantage of COVID-19 related relief, provided that loans that were delinquent prior to deferral will continue to be reported as delinquent.
  • No Late Fees for Missed Payments: Provide relief from mortgage-related fees.

The following organizations have committed to the Chicago Housing Solidarity Pledge:

  • Bank of America
  • BMO Harris Bank
  • Byline Bank
  • CIBC
  • Fifth Third Bank
  • First Eagle Bank
  • First Midwest Bank
  • Northern Trust Bank
  • PNC
  • US Bank
  • Wintrust Bank
  • Second Federal Credit Union
  • Seaway Credit Union
  • Lawyers Committee for Better Housing (LCBH)
  • Chicagoland Apartment Association (CAA)
  • Neighborhood Building Owners Alliance (NBOA)
  • Chicago Association of REALTORS (CAR)

Here's a link to the announcement:  Press Release

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  • Member since 2018 · 1k+ posts · 1k+ votes
    6y

    "housing lenders affirm they may provide . . ."

    -------------------------------

    They MAY provide it now, without the pledge. This is utterly meaningless feel good crap, which was and is a waste of money to develop and put out. How about Chicago spends its time, money, and effort, on running efficient government without all the political fluff?


    I used to have great hopes for Lori Lightfoot. She has been, however, a massive, massive, fail in my book. Between her pandering and ineffectiveness though, she lost me. Given that she had Chicago sign a contract for 2,000 hotel rooms at $175 per night (for Covid-19 victims), when hotel rooms were going for under $110 per night, I can only conclude that her administration is corrupt, too.

  • Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    6y

    @John Clark I'm with you on the "pledge."  What a stupid waste of everyone's time.  This has public relations bullshet written all over it.  

    I cannot speak to anything else that's subjective, like her ineffectiveness, but it seems there's more going on with the hotel contract than just a headline.  If $175/night is true, it's a huge win if market rates were higher at the same time.  It's unreasonable to compare pre-covid rates with current rates IMHO.  

    But back to the Mayor's statement, looking at it individually:

    • Grace Period for Mortgage Payments: Offer deferred payments with repayment terms that avoid immediate repayment at the end of the deferral period.  you mean, forbearance which is a good solution for 1 - 2% of landlords.  USELESS!!!
    • Suspension of Foreclosures: Provide relief from foreclosure filing until May 31, 2020.  This was known before...and therefore is:  USELESS!!!
    • Neutral Reporting to Credit Agencies: No reporting late payments to credit reporting agencies, consistent with applicable guidelines, for residential borrowers taking advantage of COVID-19 related relief, provided that loans that were delinquent prior to deferral will continue to be reported as delinquent.   It would be far more important if mortgage servicers all agreed, in writing, to this.  otherwise it has no teeth:  USELESS!!!
    • No Late Fees for Missed Payments: Provide relief from mortgage-related fees.  again, what about the mortgage servicing companies!!!  USELESS!!!
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