Hartford Business Journal

www.HartfordBusiness.com • April 6, 2020 • Hartford Business Journal 19 Jorge Perez said. Participants have also agreed to not initiate new foreclosures for two months. Institutions and regulators are urging borrowers who need help to be proactive and reach out to their lender or loan servicer as quickly as possible. The voluntary program is sure to help many homeowners in the com- ing months, but it comes with a few caveats. One is that it does not apply to mortgages controlled by federal entities like Fannie Mae and Fred- die Mac, which own a majority of Connecticut home loans. The feder- ally backed programs have issued their own payment forbearance offerings, which range from two months to as long as a full year, depending on the situation. Those seeking help may be re- quired to deposit their mortgage in- surance premiums and property tax payments into an escrow account. Those costs can be a sizable chunk of a monthly mortgage payment, and could weaken some of the relief lenders are offering. Gnawing at the mind Bank and credit union CEOs are mostly putting on an optimistic face, choosing to believe that the government will get COVID-19 under control, but press almost any of them just a bit, and they'll share their doubts and fears about the coming months. In addition to expressing concern about the health and safety of their workers and customers, they say the speed of the recovery will matter greatly. "I think a long tail on this pub- lic health crisis would create a much more difficult financial climate go- ing forward," said the Credit Union League's Adams. His banking counterpart Mongel- low agrees. "The duration will dictate how severe the economic consequences might be," Mongellow said. Just how long the recovery takes could hinge on the extent to which the coronavirus pandemic is brought to heel, or not, in the weeks and months ahead, and there are challenges aplenty posed by a shortage of testing kits and personal protective gear. "I think we have to prepare for months, not weeks, in terms of our approach with individual members and business members," 360 Fed- eral's Crisco said. There are also questions about how well the stimulus will work. "I'm not going to say it's go- ing to prevent a recession, because I think we're probably in a recession already today, we just don't have the numbers to show it," said Ion Bank's Rotatori. "But if the money flows quickly, it will blunt the impact." Ion expects to see its mortgage business and auto lending decline, at least temporarily, as it continues to shift more of its focus to commer- cial lending. North Haven-based Connex Credit Union CEO Frank Mancini is also anticipating the housing market — a key segment for many lenders — to go through doldrums over the coming months. "You're going to have a hard time finding people going out shopping for houses, I think," Mancini said. "[Sellers] don't want people going through their house." Then there's a question upon which some are trying not to dwell: What if CO- VID-19 comes back before a vaccine is ready, wreaking fur- ther economic and human harm and forc- ing another round of social distancing? It's an unset- tling prospect, Adams said. "If we woke up and COVID was gone, and everyone knew it, we could confidently put the pieces back to- gether," he said. "But if we don't know that the specter is gone, we might keep our money on the sideline." Thomas S. Mongellow, President and CEO, Connecticut Bankers Association Bruce Adams, CEO, Connecticut Credit Union League Duane Crisco, CEO, 360 Federal Credit Union Frank Mancini, CEO, Connex Credit Union Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students, workforce centers, manufacturers, business leaders, and company owners. Join us now and be part of the solution! HELP RECRUIT TOMORROW'S MANUFACTURING WORKFORCE IN CT! THANK YOU TO OUR GOLD SPONSORS: COMPANIES THAT HAVE ALREADY JOINED THE MOVEMENT: Follow Cool Stuff Made in Connecticut Stuff Made in CT stuffmadeinct stuffmadein www.stuffmadeinct.com Please contact Sue Lavin for early bird discounts at slavin@hartfordbusiness.com or call 860-236-9998 ext. 128. Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students, Join the team and put your company's best foot forward in this special publication being distributed throughout Connecticut to highschool and college students,

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