news.cuna.org/articles/118072-minn-cus-offer-forbearance-plan-to-members-hit-by-pandemic
Coronavirus

Minn. CUs offer forbearance plan to members hit by pandemic

July 7, 2020

Minnesota’s Credit Unions announced that they will offer 90-day mortgage forbearance to members experiencing financial hardship due to the COVID-19 pandemic. 

Since the beginning of the pandemic, Minnesota’s Credit Unions have been assisting members. 

As of the end of May, Minnesota’s credit unions had already:

  • Provided over 1,300 emergency loans
  • Provided extensions on over $798 million in business loans
  • Provided extensions on over $300 million in mortgages
  • Waived over $1.8 million in late fees
  • Administered over 4,500 PPP loans totaling over $180 million

Twenty seven Minnesota credit unions have signed on to an agreement with other financial institutions to provide a uniform set of mortgage relief options.

Under the agreement with Minnesota Attorney General Keith Ellison, Governor Tim Walz, and Lieutenant Governor Peggy Flanagan, participating credit unions will offer:

  • 90-day forbearance period for customers facing financial hardship caused by COVID-19
  • Participating financial institutions will offer mortgage-payment forbearances of up to 90 days to single or multi-family mortgage customers directly impacted by COVID-19.  Qualifying customers can begin applying for forbearance on July 1, 2020. 
  • Customers accessing forbearance will not be required to make a lump sum payment at the end of forbearance plan
  • Participating financial institutions will not require single family customers who qualify for forbearance under this agreement to make a lump sum payment at the end of the forbearance plan. Instead these institutions will work with borrowers on repayment options. Including:
    • Allowing customers to add the reduced or missed payments over the lifetime of their loans
    • Extending the maturity of the loan to make up for the missed payments
  • No late fees or negative credit reporting for customers in a forbearance plan
    • For single family customers who are in an active forbearance plan under this agreement, the participating financial institutions will:
      • Freeze all mortgage-related late fees for missed payments; and
      • Not report late or missed payments with credit reporting agencies

“When I saw what assistance measures our elected officials were proposing, I was immediately proud. Affinity Plus, and many of our fellow Minnesota Credit Unions, are already doing what was being asked to help our  members,” said Dave Larson, president/CEO of Affinity Plus Federal Credit Union.

“I’d like to thank Governor Walz and Attorney General Ellison and their teams for working on the critical issue of mortgage relief.  This agreement speaks to the essence of why credit unions exist; to support our members.  By participating in this program Wings Financial will do as we’ve always done, and that’s watch out for the financial best interests of our members.” said Frank Weidner, president/CEO of Wings Financial Credit Union. 

“As not for profit financial cooperatives, it’s part of our DNA to help consumers through tough times,” Mark Cummins, president/CEO of the Minnesota Credit Union Network said. “Since the COVID-19 pandemic reached Minnesota, the state’s credit unions have provided hundreds of thousands of their members relief from mortgages, auto loans, credit card payments and business loans. Minnesota Credit Unions are proud to participate in the Mortgage Forbearance Relief Agreement and are committed to meeting the financial needs of consumers through this evolving situation.”

Participating Minnesota credit unions include:

  • Accentra Credit Union
  • Affinity Plus Federal Credit Union
  • Anoka Hennepin Credit union
  • Central Minnesota Credit Union
  • City & County Credit Union
  • Dawson Co-op Credit Union
  • Embarrass Vermillion Federal Credit Union
  • Financial One Credit Union
  • First Alliance Credit Union
  • HBI Employees Credit Union
  • Heartland Credit Union
  • Mayo Employees Federal Credit Union
  • Members Cooperative Credit Union
  • MidMinnesota Federal Credit Union
  • Minnco Credit Union
  • Minnesota Valley Federal Credit Union
  • MN Catholic Credit Union
  • Mower County Employees Credit Union
  • North Memorial Federal Credit Union
  • NorthRidge Community Credit Union
  • Riverview Credit Union
  • South Metro Credit Union
  • TopLine Federal Credit Union
  • Two Harbors Federal Credit Union
  • Virginia Co-op Credit Union
  • Wakota Federal Credit Union
  • Wings Financial Credit Union