Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FFIEC releases loss mitigation guidance
WASHINGTON (8/7/09)--The Federal Financial Institutions Examination Council (FFIEC) on Thursday said that mortgage loan servicers “have an obligation to act in the best interests” of their clients and should not consider “the potential impact” of a loan modification on a first or subordinate lien mortgage. The FFIEC, which includes the National Credit Union Administration as well as other federal regulators, said that mortgage loan servicers should modify first lien mortgages or subordinate liens “when doing so would produce a greater anticipated recovery” to the lienholders “than not modifying the loan.” Failing to follow these standards “may be a breach of the servicer’s obligation” to their clients, the FFIEC statement warned. The joint agency release noted that it was a reiteration of guidance given in the past. Perhaps coincidentally, there has been a spate of negative attention to loan modification efforts by some of the nation’s mortgage lenders who critics charge could be doing more to help troubled mortgage holders avoid foreclosures on their homes.


RSS print
News Now LiveWire
#FreeGasFriday courtesy of @tvfcu, TN #creditunions http://t.co/wDRFYJVlpz
3 hours ago
If you were unable to watch or attend @cuna 's @thehill Hill forum on Wed., you can now watch the archived version: http://t.co/FhUnp7HbU8
4 hours ago
Time is running out. If you haven't taken the #NewsNow readership survey, please click here now: http://t.co/4Gp6C2Wa4o
4 hours ago
African financial inclusion possible with mobile money: @IMFNews study http://t.co/0V5DTQToxY
5 hours ago
Louise Herring's birthday is Saturday. 105 years later, her legacy lives on through her kids http://t.co/oMqGADmo0d http://t.co/T3NmS9NqEY
6 hours ago