WASHINGTON – CUNA sent a letter to House Financial Services Committee Chairman Barney Frank yesterday in support of Frank’s proposal to use Federal Housing Administration (FHA) loan guarantees as incentives for lenders to accept mortgage writedowns for borrowers facing the prospect of foreclosure.
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“If your proposal were law, we believe more credit unions would seek FHA-approved lender status and participate in the program,” said CUNA President Dan Mica.
In a handwritten aside in the latter, Mica told Frank now would be a “perfect time” for Congress to pass capital reform for CUs to assist more troubled homeowners.
