Shutdown Guidance for Financial Institutions

Summary#

This bill requires five federal financial regulators to work together and issue written guidance within 180 days of enactment. The guidance must encourage banks, credit unions, and other financial institutions to work with consumers and businesses affected by a funding shutdown. It lists specific steps institutions should consider, including recognizing that affected people may lose access to credit or have trouble paying mortgages, student loans, car loans, business loans, or credit cards; making prudent efforts to modify loan terms or extend new credit when safe; and preventing modified arrangements from being reported to consumer reporting agencies in ways that hurt a person's credit.

The regulators must issue a press release within 24 hours after a shutdown begins to alert institutions, consumers, and businesses about the guidance. After a shutdown ends, the regulators must give Congress a report within 90 days analyzing how effective the guidance was, and must update the guidance within 180 days after that report if any problems are found.

The bill defines who is "affected by a shutdown" (Federal employees who are furloughed or excepted, District of Columbia employees not receiving pay, and federal contractors or other businesses with a substantial loss of pay or income). It names the regulators (the Federal Reserve Board, the CFPB, the Comptroller of the Currency, the FDIC, and the NCUA) and defines a shutdown as more than a 24-hour lapse in appropriations caused by a failure to pass appropriations or a continuing resolution. The bill also instructs that its budgetary effects be determined by reference to a PayGo statement submitted to the Congressional Record.

What it means for you#

• If you are a worker furloughed or not paid because of a shutdown, or a contractor or business with a big drop in income, regulated lenders will be encouraged to consider loan modifications, extensions of credit, or other steps to help.
• Financial institutions will be formally alerted about this guidance quickly after a shutdown starts.
• Regulators must report to Congress on how well the guidance worked and update it if needed.

Expenses#

No publicly available information on estimated costs or savings is included in the bill text. The bill sets timelines for issuing guidance, press releases, and reports but does not provide cost estimates.

Proponents' View#

No publicly available information in the bill text describing proponents' stated arguments or rationale.

Opponents' View#

No publicly available information in the bill text describing opponents' stated arguments or concerns.