Credit unions already enrolled in the U.S. Treasury Department's Making Home Affordable Program said they are working hard to help members behind on their mortgages make it through the so-called "waterfall test."
The waterfall test refers to the process laid out in the MHAP for helping homeowners either late on their mortgage payments or at risk of becoming late modify the terms of their loans to bring their payments to lower than 31% of their gross monthly income.
The four participating in the program so far are the IBM Southeast Employees Federal Credit Union, headquartered in Boca Raton, Fla.; Mission Federal Credit Union, headquartered in San Diego; Purdue Employees Federal Credit Union, headquartered in West Lafayette, Ind.; and Technology Credit Union headquartered in San Jose, Calif.
So far, credit unions participating in the program say they are helping those members get into the program if they can but are still committed to those who do not qualify. "If we can't work their payments down to below 31%, we will still work with them on a more customized solution," explained Laura Hetherington, vice president of lending for IBM Southeast.