As a means of lending assistance to those who may be in need, federal and state regulators are encouraging financial institutions to work with consumers impacted by the federal government shutdown.
Officials representing the Federal Reserve System Board of Governors, Conference of State Bank Supervisors, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency and the Office of the Comptroller of the Currency said they are urging financial institutions to consider prudent efforts to modify terms on existing loans or extend new credit to help affected borrowers. The overarching goal is to as with a series of potential fiscal constraints derived from the shutdown.
The Consumer Financial Protection Bureau said regulators maintain 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 – adding efforts should not be subject to examiner criticism.
While acknowledging the effects of the federal government shutdown on individuals should be temporary, regulatory officials said borrowers might face a temporary hardship in making payments on debts such as mortgages, student loans, car loans, business loans or credit cards.
Consumers impacted by the government shutdown are encouraged to contact their lenders immediately should they encounter financial strain, officials said.