LANSING, Mich.–Associations representing credit unions across five states have compiled updated numbers showing how CUs have responded with relief and assistance during the coronavirus pandemic to date.
The numbers are being shared with elected officials and policymakers to highlight what CUs are doing at the local level.
In Michigan, the league reported more than 400 credit union professionals and volunteers met with Michigan Gov. Gretchen Whitmer and Department of Insurance and Financial Services (DIFS) Director Anita Fox. The governor and director Fox shared insights regarding the impact of the COVID-19 health and financial crisis on Michigan’s residents and business community, the MCUL said.
Michigan league CEO Dave Adams told the meeting the state’s credit unions’ primary focus is on providing for the consumers and small businesses hardest hit by the pandemic. Adams asked Whitmer and Fox, as they give legislative and regulatory guidance, to help credit unions serve those hardest hit, without creating undue financial stress for lenders themselves, according to the league.
Prior to the discussion with the credit union industry representatives, MCUL said it shared highlights regarding credit unions’ financial service relief efforts, including the following:
- The league told the governor that since her March 24 “Stay Home, Stay Safe” order was issued, Michigan’s credit unions have been voluntarily reaching out to hardest hit members to help delay mortgage and other loan payments, waive fees, provide emergency cash, help small businesses access SBA paycheck protection loans and respond to other extraordinary needs.
- For the seven weeks March 24 to May 12, Michigan’s credit unions made an estimated 10,000 Paycheck Protection (PPP) loans to very small businesses with an average of fewer than five employees. Median average loan sizes were $20,000 and one in ten businesses got financing from a credit union after being turned away by other lenders.
- Virtually all Michigan credit unions have been voluntarily assisting financially impacted homeowners by delaying foreclosures and offering payment delay (forbearance) arrangements. More than 140 credit unions and support organizations signed on to the Governor’s April 23 MiMortgage Relief Partnership that sought to broaden these efforts to all mortgage loan servicers in Michigan.
- During those seven weeks, an estimated 6,000 homeowners owing $400 million in mortgage loans have received assistance with their mortgage payment delays (forbearance), and more than 100 foreclosures have been postponed due to financial hardship related to temporary income loss.
- On auto and other consumer loans, credit unions have allowed more than 170,000 skipped payments on loan amounts totaling over $700 million. In virtually all cases, the normal skip-a-pay fees were also waived. Also, on auto and other consumer loans, more than 40,000 loans, covering $450 million in outstanding loans, have had payment terms modified to provide financial relief.
- Emergency cash loans, usually carrying a zero-percent loan rate and deferred payments, were made to more than 4,400 financially impacted consumers on an estimated $15 million in loans, providing an average of $3,500 per borrower — essential funds for paying rent, other critical bills and just putting food on the table.
- Credit unions are providing impacted members with more than 300,000 fee waivers for late payments, early CD withdrawals, insufficient funds fees and ATM and overdraft fees, saving impacted members more than $6 million.
- The league said credit unions are also stepping up their normal community service efforts, expanding support to nearly 3,000 organizations statewide with over $1.2 million in contributions, including an estimated $200,000 in support for first responders. These efforts have included the donation of gloves and masks, pizza lunches and snacks for healthcare workers, small grants for local restaurants and partnering with local radio stations to recognize and reward healthcare heroes.
“The support, flexibility and assistance Michigan’s credit unions have provided to Michigan homeowners and small businesses has been critical to helping Michiganders navigate the financial challenges caused by COVID-19,” said Gov. Whitmer. “Michigan’s financial institutions will be key to our efforts to restore and grow Michigan’s economy going forward.”
Infographics Created
Meanwhile, the Marlborough, Mass.-based Cooperative Credit Union Association (CCUA) said CUs in the four states it represents have worked with borrowers to extend payments and provide other relief on a total of more than $2.1 billion in loans in response to the coronavirus.
In addition, data compiled for credit unions in the three states through May 5 show fees had been waived in more than 452,000 instances. The CCUA represents CUs in Massachusetts, Delaware, Rhode Island and New Hampshire.
“The survey results gathered illustrate the impact of how credit unions statewide are making a difference in their communities and in their members’ lives. Another survey will be done in the future to obtain updated information,” the CCUA said.
The survey results can be seen in the infographics below.