Louisiana Credit Unions provide critical support for members facing home loss in Hurricanes’ aftermath
Leveraging the sixth cooperative principle, Cooperation Among Cooperatives, Luminate Louisiana Credit Unions found their credit unions shining when neighboring states needed best practices to aid in the recovery from Hurricane Helene. With Hurricane Milton approaching, Luminate wants to share critical information with all credit unions who have members preparing for or experiencing the devastation from this year’s Hurricane season.
LeeAnn Persick, Xplore Federal Credit Union’s Vice President of Lending, suggested modifying “Skip-a-pay” payments and Loss draft assistance from previously used successful COVID protocols to meet the needs of hurricane survivors who have experienced home damage or loss.
Persick also mentioned public resources for members to consider:
- FEMA – apply for FEMA disaster assistance online, by phone, by using the FEMA app, or in person at a Disaster Recovery Center. The phone number is 1-800-621-3362.
- American Red Cross – provides disaster relief services, including shelters and a helpline for finding loved ones. The helpline number is 1-800-RED-CROSS (1-800-733-2767).
- SBA – After receiving FEMA registration number, they can apply for an SBA disaster loan online, by phone, or at a Disaster Recovery Center. SBA contact center at 1-800-659-2955.
Jeff Caire, Chief Lending Officer at New Orleans Firemen’s Federal Credit Union (NOFFCU), shared additional best practices for homes deemed a total loss. “When homes are classified as a total loss in communities facing widespread devastation, we generally provide a 2-3 month automatic extension on the loan, and we waive the escrow to ease the burden on our members,” said Caire.
In Louisiana, where state laws can differ from others, NOFFCU has created forms to extend loan terms while allowing members to repay escrow amounts after the extension period. This approach offers families the breathing room they need to focus on finding temporary housing and handling other pressing matters. Caire warns to be sure that this approach is approved by your respective borrower’s before sharing.
Caire also highlighted an innovative loan product developed in response to Hurricane Katrina that continues to help members today. “After Katrina, we created a HELOC Repair and Renovation loan designed to allow members to borrow against future equity from major repairs or renovations,” Caire noted. “The loan is priced slightly higher than a traditional HELOC and permits multiple draws based on the project’s scope of work. Appraisers provide both the ‘as-is’ and ‘completed’ values of the home, and the draws are made in three or four stages, depending on the work needed. This product is especially helpful for members who may not have insurance, offering them a way to repair their homes.”
About Louisiana Credit Unions
Luminate and Louisiana’s credit unions are committed to standing by their members and credit union neighbors, providing practical financial solutions, and working together with neighboring credit unions to support communities in the aftermath of natural disasters. We encourage readers to donate to the affected state’s respective credit union foundations.
National CU Foundation’s CUAid
Carolina’s CU Foundations Disaster Relief Fund
Southeastern CU Foundation’s Disaster Relief Fund
Tennessee Credit Union League Aid
