CUNA President and CEO Dan Mica issued the following today on news that HR 200, the “Helping Families Save their Homes in Bankruptcy Act” would reach the floor of the House of Representatives in the middle of next week as part of housing legislation:

"CUNA opposes HR 200 – or any similar bill – which forces credit unions to accept a lower principal on a mortgage loan by the bankruptcy court. This measure is overly broad in its application, scope, and duration as it applies to all mortgage loans, unfairly grouping a loan made with strong underwriting standards – such as those made by credit unions -- with a loan made in an unscrupulous manner. Credit unions acknowledge that bankruptcy is a legitimate option for eligible borrowers who have no other way to address their indebtedness. We believe that the Bankruptcy Code must fairly balance the rights of both credit grantors and borrowers, and it must recognize the impact that bankruptcy has on the cost of credit to borrowers who do have the ability and determination to repay their obligations. This legislation does not meet that test."