Mortgage

Credit unions aid government employees affected by shutdown

Help with new loans and forbearance on current ones

Credit unions across the U.S. are stepping up to help government employees affected by the shutdown, which is now in its fourth week with no resolution in sight.  

There are approximately 800,000 federal workers who are either furloughed or working without pay thanks to the government shutdown. The Federal Housing Administration has already asked the mortgage industry to help those workers with their mortgages, but a group of nearly two dozen congressional Democrats want more protection than that.

Now, the Credit Union National Association announced that credit unions across the U.S. are providing assistance to the affected employees. Some of the programs included:

  • Zero percent APR interest signature relief loan for 12 months signature relief loan 
  • Pay Disruption Assistance Program with mortgage loan forbearances, loan and credit card payment deferments, and short-term low rate loans
  • Online member portals with special furlough loans
  • Preexisting loan deferred payment opportunities for up to 60 days
  • Cash advances of up to 90% of federal employee’s regular monthly pay

“Credit unions across the country are stepping up to help federal employees and families affected by the government shutdown,” CUNA Chief Advocacy Officer Ryan Donovan said.

“Relief programs offering low rates and deferred payments will aid members who are struggling to make ends meet,” Donovan said. “This is what we mean when we say that credit unions are people helping people.”

This week, a group of 22 Democrats introduced legislation in both the Senate and the House of Representatives that would protect federal workers and their families from foreclosures, evictions, and loan defaults during a government shutdown.

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