WASHINGTON NCUA and bank regulators on Wednesday called on lenders to work with members and customers affected by the federal government shutdown.
Prudent workout arrangements that are consistent with safe-and-sound lending practices are generally in the long-term best interest of the financial institution, the borrower, and the economy, the regulators said in a statement issued by the Federal Financial Institutions Examinations Council.
Affected borrowers may face a temporary hardship in making payments on debts such as mortgages, student loans, car loans, credit cards, and other debt, they noted. The agencies encouraged financial institutions to consider “prudent” workout arrangements that increase the potential for creditworthy borrowers to meet their obligations.
The agencies added they realize that the effects of the federal government shutdown on individuals should be transitory, and prudent efforts to modify terms on existing loans should not be subject to examiner criticism.
