Federal agencies shared information on their programs and functionality during the government shutdown.
Details:
Federal financial regulators issued a joint statement clarifying that lenders may continue to make loans subject to federal flood insurance statutes during the government shutdown, even if the National Flood Insurance Program is unavailable.
Fannie Mae and Freddie Mac do not rely on federal funding and have continued operations during past government shutdowns. However, they depend on certain federal processes that could be disrupted.
The Community Development Financial Institutions Fund said that for the duration of the federal government shutdown, limited CDFI Fund staff and services will be available and any regularly scheduled webinars are cancelled but may be rescheduled once the federal government is fully operational.
The Federal Housing Administration’s Office of Single Family Housing and some of its mortgage insurance programs will be operational but with limited services.
Info to Share with Customers: Community bankers can use the following talking points to assure customers during the shutdown:
Deposits and accounts are safe and secure during a temporary federal government shutdown. Banks remain fully operational and will be open normal hours.
Deposit insurance through the FDIC continues to protect funds.
Everyday banking services, including checking, savings, debit, and credit cards, function as normal, and personal mortgages and loans are completely unaffected.
Small Business Administration and U.S. Department of Agriculture lending, among other programs, are partially impacted during a shutdown and new paperwork may be processed on a delayed timeline.
Existing SBA, USDA, and other federally backed loans are unaffected.
Due to this temporary federal government shutdown, select federal payments and benefits may be delayed.
The financial system remains stable during this temporary federal government shutdown, and everyday activity continues as normal.
