Mortgage forbearances, auto loan deferments add up to over a billion dollars
May 20, 2020 (DENVER, Colo.) – Colorado credit unions have provided over $1.03 billion in mortgage deferments and more than $657 million in auto loan deferments during the Coronavirus crisis. Representing over two million members in the state, Colorado credit unions have worked with their membership to provide multiple options to offer help as we all navigate this unprecedented situation.
Mortgage forbearance is a temporary stoppage of mortgage payments for a set period of time, typically up to three months. Credit union members work directly with their financial institution to utilize. Skipped payments, typically the option for auto loans, allow a member to defer payments for a period of time on auto loans and unsecured term loans. During this time, interest accrues as it normally would, and the skipped payments are then added at the end of the loan period.
“Credit unions have long been more than just place to keep your accounts,” said Scott Earl, President and CEO of the Mountain West Credit Union Association. “They are truly a partner to their members. Which is why when this crisis hit, they mobilized quickly to provide a wide variety of options for relief.”
While all the talk has been about the Paycheck Protection Program, not everyone impacted by the current crisis is an eligible recipient of that relief. As financial first responders, credit unions stepped up to assist their members from the very beginning of the Coronavirus pandemic. In addition to many Colorado credit unions offering the Paycheck Protection program under the CARES Act, credit unions also have offered short-term, low or no-interest loans; deferments on payments; and other types of programs. This has given members multiple ways to help offset the financial impacts of the crisis.
About the Mountain West Credit Union Association
The Mountain West Credit Union Association is the regional tri-state trade association representing 123 member credit unions, 3.8 million credit union members and $51 billion in assets throughout Arizona, Colorado and Wyoming. Not-for-profit in nature, credit unions provide low-cost financial services to their members. Founded in 2011, the Mountain West Credit Union Association serves and supports the interests of member credit unions through advocacy, community outreach, education and training, public affairs, regulatory and compliance services and strategic partnerships. The Mountain West Credit Union Association is affiliated with Credit Union National Association (CUNA), World Council of Credit Unions (WOCCU) and CUNA Mutual Group. Follow us on twitter at twitter.com/mwcua or on Facebook at facebook.com/mwcua. To learn more visit mwcua.com.