Government Shutdown Prompts Federal Reserve Call For Banks To Work With Federal Employees Cash Pinch

  @gmorcroftg.morcroft@ibtimes.com on October 09 2013 2:13 PM
Furlough Photo
“Ryan,” a contractor for a federal agency who has been forced to stay home from work since the U.S. government shutdown began, took photographs on Thursday of his life as a furloughed federal worker. It’s safe to say that he played a lot of “Grand Theft Auto V.” “Ryan” for International Business Times

The U.S. Federal Reserve and four other government regulatory agencies on Wednesday issued the following notice to member banks encouraging them to work with customers affected by the government shutdown.

Five federal regulatory agencies encourage financial institutions to work with 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.

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 agencies encourage financial institutions to consider prudent workout arrangements that increase the potential for creditworthy borrowers to meet their obligations.  The agencies 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.  

Those affected by the government shutdown are encouraged to contact their lenders immediately should financial strain occur.

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