S. 2995 — Shutdown Guidance for Financial Institutions Act

This section directs the Federal financial regulators (i.e., Board of Governors of the Federal Reserve System, Bureau of Consumer Financial Protection, Comptroller of the Currency, Federal Deposit Insurance Corporation, and National Credit Union Administration) to jointly issue, within 180 days of enactment and in consultation with state banking regulators, shutdown guidance for regulated financial institutions. The guidance encourages institutions to (1) work with consumers and businesses affected by a shutdown (defined as a lapse in appropriations exceeding 24 hours), including furloughed or unpaid federal or District of Columbia government employees and federal contractors or other businesses with substantial reductions in pay or income; (2) recognize potential hardships in debt payments such as mortgages, student loans, car loans, business loans, or credit cards; (3) consider prudent loan modifications or new credit extensions consistent with safe-and-sound practices; and (4) prevent adverse credit reporting that harms affected consumers. This section further requires the regulators to issue a press release on the guidance within 24 hours of a shutdown's start; submit to Congress, within 90 days after a shutdown ends, a report analyzing the guidance's effectiveness; and update the guidance within 180 days after any such report if shortcomings are identified.