Regulators Encourage Loan Workouts for Those Caught in Gov't Shutdown

October 10, 2013
American Banker  
debt settlement news

Banks and other financial institutions should consider loan modifications for borrowers impacted by the government closure, according to federal regulators.

In a joint statement, the Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corp., National Credit Union Administration, and Office of the Comptroller of the Currency called for workout arrangements that would help creditworthy borrowers satisfy 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," the statement said.

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