Despite what almost everyone agrees is the deep importance of the topic, credit unions have become largely ambivalent about reforming the secondary mortgage market and uncertain about potentially disrupting a system which seems to be working well, according to executives with credit union organizations familiar with the issue.
Lenders in streamlined refinance programs, including HARP, will be eligible for relief after an acceptable payment history of only 12 months.
New guidelines permit some homeowners with a Fannie Mae or Freddie Mac mortgage to sell their home in a short sale even if current.
FHFA said it has postponed but not killed idea of principal of forgiveness for Fannie and Freddie loans.
The trades last week came out against principal forgiveness, an idea floated by Federal Housing Finance Agency Director Edward DeMarco. Political observers, however, noted that he has long been opposed to debt forgiveness and may be simply responding to consistent pressure from the Democratic Party.
Some thoughts on strategic defaults, remote deposit capture and even Greece.
FHFA Director defends principal forgiveness math.
NAFCU CEO worries about indirect impact from principal forgiveness.
Possible Fannie Mae, Freddie Mac write-downs could in fact help credit unions by forcing losses onto holders of first liens.
NAFCU, ABA react to FHFA director comments about considering principal forgiveness for some underwater loans at Fannie Mae and Freddie Mac.