Deferred Loan Payment Program (DLPP)
Naveo Credit Union’s Deferred Loan Payment Program (DLPP) is designed to provide temporary relief from loan payments for Naveo borrowers experiencing temporary financial hardship as a result of the COVID-19 pandemic and its economic aftermath. The DLPP will reduce or eliminate monthly payments for up to 90 days for eligible Naveo loans and borrowers.
All Naveo loans not covered under the Skip-a-Payment Program may be eligible for the DLPP, if the loan was not delinquent more than 30 days as of March 13, 2020, the date that a National Disaster was declared by the Federal government. These loan types include first and second mortgages on the borrower’s primary, vacation or investment home, on commercial property, and on lines of credit for personal or commercial purposes.
Eligible borrowers are Naveo members who are suffering significant financial hardship as a result of the economic disruptions caused by the COVID-19 pandemic in the United States, and who cannot make their normal monthly loan payment. Significant and immediate financial hardships may include:
- Loss of income from terminated or interrupted employment, or from an illness related to COVID-19, or from the care for a relative sick because of COVID-19, or from the care for a child whose school has closed because of COVID-19;
- Loss of business income from cancelled or postponed orders or the closing of the business, because of COVID-19;
- Reduction or elimination of rental revenue from tenants who cannot pay their rent because of their own loss of income from circumstances related to the COVID-19 pandemic.
Naveo is committing considerable resources to the timely assistance of our most needy borrowers. We want to help you quickly. Nevertheless, we are expecting a heavy volume of deserving applicants, which may cause some delays in responding to you. We will process your application as quickly as we can. We are asking you to be patient as we process the many requests for assistance and forbearance.
Naveo members not experiencing financial hardship can also help greatly: we are asking these Naveo borrowers to continue making regular monthly payments. Your continuing and timely payment performance, especially through paperless electronic means, will help Naveo respond quickly to our most distressed members.
The terms of the DLPP have been designed with guidance from Fannie Mae and the Federal Home Loan Bank, two Naveo business partners which are national mortgage finance entities sponsored or regulated by agencies of the Federal government. These terms are similar to programs which are being offered by many other financial institutions throughout the country.
How to Apply
To apply for payment relief under the DLPP:
- Visit this link to download the fillable Deferred Loan Payment Application
- Prepare a brief explanation (short note or email) of your financial hardship and its cause
- Complete, print and sign the application.
- We require a “wet” signature. A high quality scan or photo is acceptable for email.
- Send application and hardship explanation note back to Naveo by:
- Email: firstname.lastname@example.org with complete application as an attachment
- Fax: 617-547-3451
- Mail: Naveo Credit Union, Loan Servicing, 493 Somerville Ave, Somerville, MA 02143
After we receive your complete and signed application, we will contact you to discuss the options for payment relief within five business days.
- Naveo’s Skip-a-Payment Program For Eligible Consumer Loans
- Naveo’s Emergency Assistance Loan For Existing Naveo Members
- SBA Emergency Disaster Loan Assistance
Frequently Asked Questions (FAQs)
Naveo recommends that you pay as much as you can. One suggestion would be to allocate about 40% of your monthly income to making loan payments, including your Naveo loan payment.
For the 90-day forbearance period, you may reduce your Naveo loan payment as low as you need to.
If you apply for the DLPP before the payment becomes due, and your Application is approved, Naveo will not report the payment as delinquent to the national credit bureaus, for as long as your loan is under the DLPP.
No, Naveo does not charge a fee to analyze, approve or process your application for the payment forbearance.
We anticipate most of our borrowers who have been affected by the pandemic will be approved. However, a borrower who was late on his loan by more than 30 days on March 13, 2020 (the date that a national disaster was proclaimed by the Federal government), will not qualify for the payment deferral. We encourage everyone to apply who has been financially affected by the pandemic.
Naveo is dedicating all available resources and efforts to providing our borrowers with a timely and professional response to their application. However, because of the large numbers of expected applications, we may experience a backlog and some delays in addressing every application. To be fair to all our members, we will process each application in the order in which it was received. We encourage you to apply via email.
For the vast majority of Naveo loans, the principal portion of your loan will be added to the end of your loan. If someday you sell your home, or refinance the existing mortgage with a new mortgage, the payoff of the existing loan will reflect a higher principal balance because of the payments you didn’t make. That will also be true for loans that are not mortgages, like business loans, home improvement loans, Mass Solar loans, HEAT loans, automobile loans and personal loans.
The interest on your loan will continue to accrue during the forbearance period.
Before that period ends, we will contact you to set up a new payment plan. In some cases, your payment may increase to catch up on property taxes and insurance premiums Naveo paid on your behalf during the forbearance period. In other cases, we will extend the term of your loan with extra payments at the end. For some loans (especially first mortgages with interest rates fixed for 20 to 30 years), investor rules may require a loan modification that will increase your payment to catch up on principal and interest not collected during the forbearance period.
We will contact you to discuss your financial circumstances. Based on the information you provide, the type of loan you have with Naveo, and guidance from Federal agencies and regulators, we will work with you to develop a payment plan.
- Please start with a brief explanation of your financial hardship and its cause; a short note or email is sufficient.
- Complete and sign the Deferred Loan Payment Application, which you can find here. Follow the guidelines on page 2 of the Application for the type of documentation we will need from you.
- Please send the Application and your brief explanation:
- By email to: email@example.com
- By mail to: Naveo Credit Union, Loan Servicing Department, 493 Somerville Avenue, Somerville, MA 02143.
If I can continue making my loan payments on time, either from income or from assets or some other means, should I continue paying? Is there any advantage or harm in applying for the payment forbearance if I don’t need to?
Naveo recommends that all borrowers who can continue making their payments on time continue to do so. Payment forbearance is designed to provide relief to borrowers who are experiencing financial hardship from the pandemic, but it is not payment forgiveness. The payment will still need to be made, but later on when borrowers are back to work and able to make the payments. During the forbearance period, interest will continue to accrue on the loan, and property taxes or insurance premiums that Naveo pays on your behalf will need to be paid back later. So, loans with payment forbearance will take longer to pay off, or will have higher pay-off amounts later, or will have higher payments after the forbearance period. If you are not facing a financial hardship, please continue making your payments on time. That will also allow us to dedicate our efforts to our members who are facing financial hardship.
On the other hand, if making the loan payments creates a financial hardship because of COVID-19, we encourage you to apply. Applying and receiving the benefit of the payment forbearance will not harm your credit or your ability to borrow later and will not incur late fees.
We appreciate the cooperation of all our members; we know that this may be a stressful time for you, and we want to help. Here are some things you can do to help us:
- If you have not been impacted financially by the pandemic, we ask that you not apply, so we can devote our resources to members in financial hardship. If you face hardships later, we will have this program available for you then.
- Please submit applications completed fully and submitted with the required documentation through email or mail. Due to the continuing health crisis, we cannot meet in person with applicants. If you encounter difficulty completing the application, please consider enlisting a technology-savvy relative or neighbor whom you trust to help you complete the application.
- If a Naveo employee asks you for documentation, please provide it as quickly and completely as you can.
- When interacting with our staff, please be patient and courteous as we work to respond to you as quickly as possible.