House Passes Measure With Cram-Down Provision and Some Benefits for CUs
Credit unions got a mixed back of goods when the House of Representatives passed a housing bill yesterday by a margin of 234-191.
The measure includes a provision allowing bankruptcy judges to rewrite the terms of mortgages, which credit unions have long opposed. Credit unions, banks and other financial services providers persuaded Democrats to include provisions that made it less objectionable, such as requiring the homeowner to make a greater effort to reach an agreement with the mortgage holder before filing for bankruptcy.
The bill also gives the credit union system five years to replenish the NCUSIF, makes the insurance coverage of accounts up to $250,000 permanent, and increases the NCUSIF's borrowing authority from $500 million to $6 billion. That amount hasn't been raised since the fund came into existence in 1971.
The Senate could take up the measure as early as next week.