ST. PAUL, Minn.–Credit unions in Minnesota said they are now offering 90-day mortgage forbearance to members experiencing financial hardship due to the COVID-19 pandemic.
Twenty seven Minnesota Credit Unions have signed on to an agreement with other financial institutions to provide a uniform set of mortgage relief options. Under the agreement with Minnesota Attorney General Keith Ellison, Gov. Tim Walz, and Lt. Gov. Peggy Flanagan, participating credit unions will offer:
- 90-day forbearance period for members facing financial hardship caused by COVID-19
- Mortgage-payment forbearances of up to 90 days to single or multi-family mortgage customers/members directly impacted by COVID-19. Qualifying customers can begin applying for forbearance on July 1, 2020
- Members/customers accessing forbearance will not be required to make a lump sum payment at the end of forbearance plan. Participating financial institutions will not require single family members/customers who qualify for forbearance under this agreement to make a lump sum payment at the end of the forbearance plan. Instead, these institutions will work with borrowers on repayment options that include allowing members/customers to add the reduced or missed payments over the lifetime of their loans, and extending the maturity of the loan to make up for the missed payments
- No late fees or negative credit reporting for members/customers in a forbearance plan. For single family members/customers who are in an active forbearance plan under this agreement, the participating financial institutions will freeze all mortgage-related late fees for missed payments, and not report late or missed payments with credit reporting agencies
‘Part of Our DNA’
“As not for profit financial cooperatives, it’s part of our DNA to help consumers through tough times,” said Mark Cummins, president and CEO of the Minnesota Credit Union Network said. “Since the COVID-19 pandemic reached Minnesota, the state’s credit unions have provided hundreds of thousands of their members relief from mortgages, auto loans, credit card payments and business loans. Minnesota credit unions are proud to participate in the Mortgage Forbearance Relief Agreement and are committed to meeting the financial needs of consumers through this evolving situation.”
The Participants
Participating Minnesota Credit Unions include:
- Accentra Credit Union
- Affinity Plus Federal Credit Union
- Anoka Hennepin Credit union
- Central Minnesota Credit Union
- City & County Credit Union
- Dawson Co-op Credit Union
- Embarrass Vermillion Federal Credit Union
- Financial One Credit Union
- First Alliance Credit Union
- HBI Employees Credit Union
- Heartland Credit Union
- Mayo Employees Federal Credit Union
- Members Cooperative Credit Union
- MidMinnesota Federal Credit Union
- Minnco Credit Union
- Minnesota Valley Federal Credit Union
- MN Catholic Credit Union
- Mower County Employees Credit Union
- North Memorial Federal Credit Union
- NorthRidge Community Credit Union
- Riverview Credit Union
- South Metro Credit Union
- TopLine Federal Credit Union
- Two Harbors Federal Credit Union
- Virginia Co-op Credit Union
- Wakota Federal Credit Union
- Wings Financial Credit Union
Other Efforts
Since the beginning of the pandemic, the Minnesota CU Network said CUs in the state have been assisting members. As of the end of May, Minnesota’s credit unions had:
- Provided over 1,300 emergency loans
- Provided extensions on over $798 million in business loans
- Provided extensions on over $300 million in mortgages
- Waived over $1.8 million in late fees
- Administered over 4,500 PPP loans totaling over $180 million