New Initiative To Help
Distressed Homeowners
WASHINGTON-Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson last week formally announced an initiative called HOPE NOW designed to coordinate and improve outreach to certain borrowers who are facing foreclosure.
Partners in the initiative include major mortgage servicers, mortgage counselors, government officials and several non-profit groups
"Foreclosures are painful not only for families, but also for neighborhoods, for mortgage servicers, mortgage investors and the economy as a whole," Paulson said.
The initiative plans a direct mail to some distressed homeowners in November. Paulson acknowledged that not all borrowers will be able to get help through the initiative, which is aimed at helping to streamline and standardize ways for lenders to adjust mortgage payment schedules.
Wings Continue To Spread With New Deal
APPLE VALLEY, Minn.-Wings Financial FCU last week announced an agreement with Colgan Air to provide the Virginia-based airline's 1,100 employees with a full range of financial products and services. It is the third regional air deal since June for the airline credit union. Under the agreement, Wings Financial will offer Colgan Air employees a customized line of checks featuring the carrier's aircraft. Wings Financial earlier struck similar deals with JetBlue Airways and Sun Country Airlines.
No Records Violation In Kentucky
FRANKFORT, Ky.-Kentucky's attorney general has ruled that Kentucky Telco FCU did not violate the Open Records Act in the disposition of a request for records related to one of its member's accounts.
At issue was a request by member Gary Tucker for records relating to his deceased mother's account at the credit union. The attorney general ruled that the Louisville-based CU is not a public agency for open records purposes, and therefore cannot be declared to have violated the act in the disposition of the request for records, according to the ruling.
Congress Revisits Bankruptcy Reform
WASHINGTON-Congress is revisiting bankruptcy reform even though it just passed a major overhaul of bankruptcy laws.
Leading to Congress' rekindled interest in an issue many were glad to put behind them is fallout from a larger problem that has already been the subject of separate hearings: the crash of the subprime mortgage market. A House Judiciary subcommittee has already approved a bankruptcy-related bill, and two, similar new bills have been submitted in the Senate.
All of the bills create a distinction for mortgages within bankruptcy proceedings and at least one bill, from Sen. Richard Durbin (D-IL) would allow borrowers to rescind a mortgage if the lender violated Truth in Lending Act or any other state or federal consumer protection law.
The Durbin bill also would give bankruptcy court judges the power to reduce the interest rate on home mortgages and extend the maturity of it up to 30 years. Sen. Arlen Spector (R-PA) introduced a bill that would allow mortgages to be modified only if underwritten before Sept. 26.
Employees Sit On, Hold Robber
FALL RIVER, Mass.-Three female employees at St. Michael Credit Union here are being credited with foiling a robbery by pinning the alleged robber on the ground and sitting on him until police arrived. The man, identified as Jose Dias, had entered the credit union with a fake gun with the intention of robbing. Police did not release details but Sergeant Paul Bernier of Fall River Police told the police the three women were able to wrestle him to the ground and hold him.
IFCU Makes $1M Donation
ORLANDO, Fla.-The $438-million Insight Financial Credit Union has made a $1 million donation to the Seminole Community College Foundation. The contribution will be used toward the future construction of a signature building on SCC's Sanford/Lake Mary Campus.
