Under the Loan Payment Deferral Program, payments of interest and, if requested, escrow (for taxes and insurance) that would otherwise be due during the Deferral Period will instead be deferred until the maturity date of the loan, which will not be extended.
The deferral of interest and escrow means that the borrower may pay the Bank more total interest than was disclosed at the time of the signing of the loan agreement, and will result in a balloon payment at the time of the final payment required by the loan agreement, unless additional payments of principal were (or are) made during the life of the loan. The maturity date of the loan will not change.
MountainOne Bank is not forgiving any payments under the Loan Payment Deferral Program and interest will continue to accrue during the Deferral Period.
The program will be administered fairly and impartially to all eligible customers, consistent with MountainOne Bank’s policies prohibiting discrimination against persons on any prohibited basis (such as classes of persons protected by the federal Equal Credit Opportunity Act and the laws and regulations enforced by the Massachusetts Commissioner Against Discrimination), and to allow MountainOne Bank to expedite the loan modification without performing any new underwriting.