Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
For CUs: Agencies' Status During Gov't Shut Down
WASHINGTON (10/2/13)--"While the gridlock in Washington has put many people in an unfortunate situation, it's important for the nation's 98 million credit union members to know that credit unions are still operating safe and sound," Credit Union National Association President/CEO Bill Cheney said following Tuesday's news of the federal government shutdown.
 
"Because we are member-owned and member-directed, our services will continue uninterrupted. During these financially uncertain times, credit unions can offer a variety of services, including short-term, specialty loans for those whose finances have been directly impacted by the shutdown," Cheney said. CUNA has readied its own resources to help credit unions inform their members of available help during the shutdown. (Use the resource link.)
 
CUNA has also noted the shutdown will not impact ACH processing.
 
"The National Credit Union Administration will remain functional through the shutdown and all accounts will be insured as usual," Cheney added. "Although NCUA is an arm of the federal government, its operations are completely funded by credit unions, ensuring the security of all member accounts," he said.


In fact, CUNA notes that most federal financial regulators are funded independently of the congressional appropriations process, and do not need to rely on Congress to pay their staff. Here's a brief update on the shutdown status of various federal agencies that are important to credit unions:
  • Consumer Financial Protection Bureau: open;
  • Federal Reserve: open;
  • Federal Deposit Insurance Corp.: open. However, the FDIC's Office of the Inspector General is closed with 113 out of 121 employees furloughed;
  • Office of the Comptroller of the Currency: open;
  • Federal Housing Administration (FHA): Partially open, and able to endorse new loans. The FHA in a recent release said it will endorse new loans under current multi-year appropriation authority in order to support the health and stability of the U.S. mortgage market. Because the agency is able to endorse loans, it said it does not expect the shutdown to significantly impact the housing market, as long as the shutdown is brief. "If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market.  We could also see a decline in home sales during an extended shutdown period, reversing the trend toward a strengthening market that we've been experiencing," FHA said;
  • Federal Trade Commission: closed;
  • Small Business Administration: generally closed; and
  • U.S. Internal Revenue Service: generally closed.

Also,  Fannie Mae and Freddie Mac are open and able to process new loans.

(See related story: CUs Offering Help To Furloughed Fed Employees.)
RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
10 hours ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
11 hours ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
13 hours ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
14 hours ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
14 hours ago