Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
NCUA amends mortgage loan investment rules
ALEXANDRIA, Va. (6/19/09)--Federal credit unions that take part in the U.S. Treasury’s home loan modification program will be allowed to modify second mortgage loans to match the terms of modified first mortgages after the National Credit Union Administration (NCUA) on Thursday voted unanimously to relax some existing lending rules. Although the Treasury recently added a second lien program to its Making Home Affordable (MHA) program, many credit unions could not participate in this program due to NCUA lending rules that “impose a 20-year maturity limit on second mortgage loans that are secured by the member-borrower’s primary residence,” according to a NCUA board action memorandum. As a reaction to this circumstance, the NCUA issued an interim final rule that is limited in scope and will allow credit unions to participate in the MHA's second lien program. Under the final rule, credit unions will be able to modify a second mortgage to match the term of a modified first mortgage--even if it is extended beyond 20 years. The NCUA currently allows credit unions to extend first mortgage loans to as long as 40 years. NCUA Vice Chairman Rodney Hood supported the measure, adding that he gives his full backing to “anything that keeps people in their homes.” The interim final rule will become effective immediately upon publication in the Federal Register. However, the NCUA will accept public comment on the rule and could revise the final rule, if necessary. The board also unanimously supported a recommendation to amend its rules to allow federal credit unions to exclude investments in the Credit Union System Investment Program (CU SIP) and Credit Union Homeowners Affordability Relief Program (CU HARP) from their total assets. Federal credit unions currently use their total assets to calculate their operating fees. This rule is final, and will be effective beginning on Jan. 10, 2010.


RSS





print
News Now LiveWire
Registration now open for @CUNA @WOCCU summer conference in Denver July 12-15 http://t.co/opq1jypsXL #ACUC #CUinDenver2015
12 hours ago
Emergency loans post- #Blizzard2015 offered by @ScientFCU in Conn. http://t.co/U9tIBzPOZV
13 hours ago
Did you get your spot in the @CUCB #CherryBlossom 10 Mile Run? Check lottery results here http://t.co/6rxT0osyWJ @CU4Kids @CMNHospitals
13 hours ago
@FamilyFirstFCU has implemented a grant program through the FHLB of NY to help first-time home buyers.
13 hours ago
#BREAKING: @federalreserve offers few new hints on rate-hike timing in policy statement http://t.co/lgZ6zZ1Vrr
14 hours ago