WASHINGTON (3/18/09)—Registration information is now available to credit unions interested in signing up for an April 2 audio conference call featuring the latest information on the Obama administration's loan modification and refinance program. The audio conference, offered by the Credit Union National Association (CUNA), will address Obama’s "Making Home Affordable Refinance and Modification Program," which is designed to help up to 9 million families refinance their existing mortgages or modify their current loans to stave off foreclosure. Under the loan modification plan, borrowers may be offered rate reductions to as low as 2%, have their loan term extended to up to 40 years, and possibly receive forbearance or a reduction in principal. Incentives are provided by the government for lenders, servicers, and borrowers to participate. Under the refinancing provisions, for loans owned or securitized by Freddie Mac and Fannie Mae, borrowers may refinance loans with balances up to 105% of the value of their house, up from the current limit of 80%. During the CUNA audio conference, participants will:
* Hear about the structure and requirements of this new program from the agency experts; * Explore the loan refinance program to understand how borrowers can refinance if a loan exceeds current market value of the home; * Examine the loan modification option and how it’s geared towards members who are behind or are struggling to make mortgage loan payments; and * Learn the requirements of each program, which members qualify, and the benefits to both the credit union and its members for participating in the program.
Key speakers will include Laurie Maggiano, senior policy advisor for the U.S. Treasury Department's Office of Financial Stability, who will address issues surrounding the loan modification program. Speakers from Fannie Mae and Freddie Mac, to be announced soon, will address the refinance aspects of the administration program. The 90-minute audio conference is scheduled for 3:30 p.m. (ET). Use the resource link to register.