Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
Two things CUs should know about 'fiscal cliff' bill: CUNA
WASHINGTON (1/4/13)--Despite the 'fiscal cliff' legislation's many tentacles, the Credit Union National Association (CUNA) said Thursday there are only two aspects of the tax package that are of direct interest to credit unions.

CUNA Senior Vice President of Legislative Affairs Ryan Donovan said credit unions should know that the bill:
  • First and foremost, did not include any change to the credit union tax status; and, second,
  • Did include CUNA-backed language to extend the Mortgage Forgiveness Debt Relief Act for a year.
That act provides tax relief to borrowers who might lose their home to foreclosure or who have negotiated a loan-term modification to forestall foreclosure. It was set to expire at the end of 2012.

The mortgage forgiveness measure altered portions of the U.S. tax code that required lender-forgiven mortgage debt to be treated as taxable income on a borrower's yearly income tax return. The measure became law in 2007.

CUNA last month joined with housing, real estate, and banking industry groups to urge congressional leaders to renew the act to help as many underwater homeowners as possible.

"If Congress fails to act, the possibility of receiving a tax bill would make it more difficult and expensive for these struggling homeowners to accept short sales and many loan modification offers" and thereby act as a foil to current loss-mitigation efforts, CUNA said in the joint letter.


RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
2 hours ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
4 hours ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
5 hours ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
5 hours ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
5 hours ago