NCUA Advises CUs on Possible Government Shutdown
Federally insured credit unions should be certain they have policies that could help members in the event of a government shutdown and prepare for difficulties if the credit union has offices in federal buildings.
Those are among the pieces of advice that NCUA Chairman Debbie Matz gave in a letter to credit unions that the agency sent out last night.
Matz recommended that the agency have policies in place that give the credit union flexibility to provide assistance to members that would be impacted by a shutdown. She added credit unions should “prudently’’ work with their members and take steps such as providing cash advances for those who receive direct deposits from the government.
She also recommended developing contingency plans if a credit union participates in certain government programs, such as mortgages backed by the Federal Housing Administration. Credit unions should decide if they should proceed with scheduled FHA loan closings and whether they should hold and guarantee new FHA loans until the impasse ends.
Matz reiterated that because the NCUA is a self-financed agency it will remain open in the event that the government shuts down most of its operations.
White House, Senate and House negotiators met until early this morning to try to resolve differences but no agreement was reached. The existing spending plans run through midnight tonight so any closing would take effect beginning tomorrow.