FFIEC encourages shutdown help for borrowers
Oct. 10, 2013 – The Federal Financial Institutions Examination Council agencies on Wednesday urged financial institutions to reach out to consumer borrowers affected by the ongoing partial government shutdown, and also urged consumers to talk to lenders about any financial difficulties.
“Affected borrowers may face a temporary hardship in making payments on debts such as mortgages, student loans, car loans, credit cards, and other debt,” the FFIEC said in a statement. “The agencies encourage financial institutions to consider prudent workout arrangements that increase the potential for creditworthy borrowers to meet their obligations.”
The agencies also said that the effects of the shutdown would be “transitory” and that examiners should be lenient about financial institutions’ efforts to modify existing loan terms to help those who are affected.
The FFIEC statement was sent by the Federal Reserve Board, FDIC, NCUA, the Office of the Comptroller of the Currency, CFPB and the State Liaison Committee.
NAFCU is maintaining a running list of credit unions promoting special programs and services to furloughed federal workers. To add your credit union to the list, send an email to Quincy Enoch, NAFCU’s associate director of legislative affairs and military liaison, to firstname.lastname@example.org.
NAFCU Government Shutdown Assistance Web page