MCUL and Michigan's Credit Unions Support Gov. Whitmer's Call for Mortgage Forbearance
The Michigan Credit Union League (MCUL) pledges its support for the concepts laid out in the MiMortgage Relief Partnership announced today by Gov. Whitmer. Michigan’s not-for-profit credit unions have always led by example in their compassionate outreach to the member/borrowers affected by tough economic times. The COVID-19 pandemic and the associated economic impact have adversely affected Michigan consumers and small businesses served by credit unions statewide.
MCUL has repeatedly polled its 218 member credit unions and, each time, the data shows that virtually all credit unions are working with their members for residential mortgage relief, including the provisions advocated by the Governor. This will continue. However, as pointed out in the State’s news release, every borrower’s circumstance is unique and financial distress directly associated with either income loss or COVID-19 illness must be taken into consideration for loan modifications. Also, the financial strength or weakness of the borrower and their ability to pay their mortgage and other loans is also taken into consideration. All of these factors are considered as credit unions continue to voluntarily meet the extraordinary needs of their members.
MCUL also applauds the counsel given by DIFS Director Anita Fox in her comments, urging “residents who can meet their financial obligations to continue to do so, while those who need assistance can work with their lender to access relief.” This guidance is important for avoiding unnecessary stress that will otherwise be placed on credit unions and other lenders as they strive to address the needs of those hardest hit by this crisis.
“While many credit unions have signed on to the MiMortgage Relief Partnership agreement and its intent, other credit unions are not mortgage lenders and instead focus on consumer loans and/or small business loans and are offering these members relief as well,” according to MCUL President/CEO Dave Adams.
In some cases, while credit unions may not have signed the agreement, all those engaged in mortgage lending have a vested interest in meeting the assistance needs of member borrowers and they continue to do so throughout this crisis.
“This is in the not-for-profit DNA of all credit unions,” said Adams.
MCUL thanks Gov. Whitmer for encouraging all mortgage lenders to work within the spirit of the provisions offered by the MiMortgage Relief Partnership, and the credit union industry enthusiastically supports these efforts.Go to main navigation