WASHINGTON (3/10/09)—The Credit Union National Association (CUNA) supports enhancements to the Hope for Homeowners (H4H) program as outlined in an interim final rule intended to draw more borrowers and lenders to that program. Under H4H, eligible homeowners may refinance their subprime mortgage loans into fixed-rate, FHA-backed loans. The H4H program also allows the subordinated lienholders to share in any future appreciation of the property as a means to encourage them to participate in the program. In a recent comment letter to the U.S. Department of Housing and Urban Development (HUD), which administers the FHA, CUNA especially endorsed a provision in the new interim final rule that would allow up-front payments to subordinated lienholders. The interim final rule would allow the subordinated lienholder to receive 3% of the subordinated loan balance if the cumulative loan-to-value ratio exceeded 135%, or 4% if this ratio was less than or equal to 135%. However, CUNA said that even with that enhancement, credit unions would continue to view the process of qualifying as an FHA-approved lender to be very burdensome. CUNA expressed a strong desire to work with the FHA to determine how the process may be streamlined to further facilitate credit union participation. Use the resource link below to read CUNA’s complete comment.