ALEXANDRIA, Va. (9/16/13)--The National Credit Union Administration is encouraging credit unions in areas distressed by severe flooding in Colorado to make prudent loans with special terms and reduced documentation for members affected by the disaster, among other things.
Modifications may include extending the terms of loan repayments, restructuring a borrower's debt obligations, and easing credit terms for new loans to certain borrowers, consistent with prudent practices.
The agency invoked its disaster policy over the weekend and in additions to encouraging special loan terms, the NCUA will, under the disaster policy and where necessary:
The agency reminded that federal credit unions can extend their assistance beyond their own membership and may also provide assistance to other credit unions, their members, and non-members in the affected areas. They may extend:
Credit unions in need of NCUA assistance dealing with members affected by the flooding should contact their primary supervisory official.
The NCUA in its weekend release also said its examiners are already surveying credit unions operating in affected areas. Some credit unions and branches in locations affected by the flooding may have curtailed hours or services, the agency noted, and added that credit union members in these areas should contact their credit unions or check their websites for the latest information.
Share deposits at federally insured credit unions remain protected up to $250,000 by the National Credit Union Share Insurance Fund. Administered by NCUA, the Share Insurance Fund is backed by the full faith and credit of the U.S. Government.
See News Now's related story, "Colorado CUs Closed In Flash Floods."