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OBA issues release on effects of government shutdown

The government shutdown has raised a few questions about what it may mean for individual consumers. How will it impact  the ability to access their money and other banking services? Is the FDIC insurance still effective and in place? Here's what consumers need to know:

• Access  to your money. Yes, you will continue  to have access to your money. ATMs will continue to work and your bank will still be open during  its regular business hours;

Deposits are safe. Your  money is safe. The Federal Deposit Insurance  Corporation  (FDIC) will continue to insure your deposits up to $250,000. Remember:  your bank  BUYS this insurance. It is not taxpayer money and, thus, is not affected by the appropriations  process in Congress;

Social Security and  Medicare payments will continue. Both are funded by payroll  taxes and those payments  will continue during  the shutdown, however long it may last;

Most  loans are still available. Fannie Mae and  Freddie Mac  are largely unaffected by the shutdown. Their operations  are funded by fees to lenders, so most loans will continue  to be available to consumers. This same scenario applies to VA loans. BUT;

Some government-guarantee loans may be unavailable. There's a lot of confusion out there, but the Farm Service Agency (part  of the Department of Agriculture), the Federal Housing Administration and the Small Business Administration will continue to process loans, but at a reduced rate. As a result this may create a backlog and could keep banks from offering consumers these products. This does not apply to Fannie or Freddie, as noted above;

Banks will continue to be regulated. Federal banking regulators  - the Federal Reserve, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and the FDIC- are all open and will remain open because they are not subject  to the federal budget. Banks pay for those federal banking examinations.

Oklahoma  bankers will continue  to work with their customers as they always have, and they will be ready to answer any questions or concerns raised by their customers  about how they may be impacted  by the shutdown.  Most customers and bank services will not be affected by this national event.

If you have additional questions about how the government shutdown could affect bank services, please contact us.