The proposal would allow individuals & businesses to “hit pause” on loan payments during this unprecedented time
PHILADELPHIA – As the City faces a potential economic fallout from the necessary shutdown of business activity as a result of the COVID-19 (coronavirus) crisis, City Councilmember Allan Domb (Allan Domb) today commended financial lenders that are exploring a proposal to provide financial relief for Philadelphia’s homeowners and businesses in need.
Councilmember Domb’s proposal to the financial institutions would help those Philadelphians who are struggling due to the crisis to hit “pause” on their loan payments on a case by case basis. The period of the loan relief would be determined by the individual financial institution.
“I have discussed with many local financial institutions the opportunity for loan relief by proposing a forbearance on residential, commercial, and small business loans in Philadelphia,” said Councilmember Domb in a letter to several lenders in the city.
According to Councilmember Domb and through discussions with area financial institutions, the ability to provide the relief will require the institutions to decide on the terms and it is not an action meant to impede on their business practice and decision-making.
“This is an opportunity to collectively stabilize our economy by encouraging our lenders and citizenry to work together,” said Domb. “As leaders in banking, business, and government we must be united in supporting our residents and businesses who need us. I commend those who have already presented their support and I look forward to informing the public of these opportunities.”
Several institutions have already pledged their support for the proposal, including: Bank of America, BB&T now Truist, Bryn Mawr Trust, Customers Bank, Firstrust Bank, First Priority Bank Division of Mid Penn Bank, M&T Bank, OceanFirst Bank, Republic Bank, Santander, TD Bank, WSFS Bank and the Pennsylvania Bankers Association.
Several supporting institutions provided the following quotes:
“For clients who tell us they are impacted by the coronavirus, we are deferring payments on credit cards, small business loans, auto loans, mortgages and home equity loans on a month-to-
month basis for the durations of the crisis,” said Jim Dever, Bank of America Philadelphia Market President.
“Bryn Mawr Trust is taking numerous actions to support and protect our customers affected by COVID-19,” said Frank Leto, President and Chief Executive Officer of Bryn Mawr Trust. “These actions include forbearance programs to help our loan customers, personal and commercial, receive necessary relief to improve their situation. Our employees are working on a customer-by-customer basis to ensure each borrower has the support for their circumstances with meaningful loan assistance.”
“This is the time for banks to step-up and do the things that are right for the people of America,” said Timothy Romig, EVP & Market President, Pennsylvania and New Jersey for Customers Bank. “The situation is too fluid and too complicated for one-size-fits-all, cookie-cutter answers. “We’re in the financial solutions business and we want to find the solution appropriate for each client.”
“We have heard many customer stories of hardship brought about by COVID 19 and the Firstrust family is committed to working on a customer-by-customer basis to help them through this difficult time,” said Richard J. Green, Chairman and CEO of Firstrust Bank. “By coming together and providing assistance and counsel that takes into account all the various forms of action and relief available, we will serve our customers well and help put our local economy back on the road to recovery.”
First Priority Bank, Division of Mid Penn Bank
“Community banks like Mid Penn Bank and its First Priority Bank Division were made for times like these. Being a good banker in good times is easy,” said Rory G. Ritrievi, Mid Penn Bancorp, Inc, President and CEO. “Being a good banker in bad times is tremendously more valuable to the community of deposit and borrowing customers. Mid Penn Bank accepts the responsibility that comes along with saying we are really good bankers. We are here to help”.
“Our customers and communities need us throughout this pandemic and OceanFirst Bank is here for them,” Susanne Svizency, Regional President – Great Philadelpiha. “Borrower relief programs may be requested by our commercial and consumer customers, plus our Relationship Managers are proactively checking in on our clients and discussing ways we can offer support. OceanFirst Bank is open for business and continuing to lend to our customers and prospective customers”
“We are here to help during this extraordinary, unprecedented period, when COVID-19 has quickly and dramatically altered the lives of our customers and our colleagues and impacted the global economy,” said Michael Carbone, Regional President, TD Bank. “We understand that many of our customers may need a helping hand until the threat of this pandemic subsides.”
“For more than 188 years, WSFS Bank has stood for one thing: Service,” said Rodger Levenson, WSFS Bank Chairman, President and CEO. “We stand ready to provide needed relief for our Customers during these unprecedented and economically stressful times. We will get through this by working together and doing what’s right for our communities.”
“We thank you for your interest in the work that banks are doing and will continue to do all we can to help your constituents during this challenging period,” said Dan Reisteter, Vice President of Government Relations for the PA Bankers Association.
Councilmember Domb finished by saying, “With additional lenders coming on board in the coming weeks, we call on our City leaders to notify their communities and begin the recovery process today.”