Man Bites Dog? - CUNA Asks for Subprime Work-Out Guidance As NCUA Stresses Importance of Flexibility

WASHINGTON — An interesting conversation about how credit unions can or can not help members resolve ongoing mortgage problems seems to put CUs on the side of more regulatory guidance and NCUA in favor of greater regulatory flexibility.

At issue are the different strategies and procedures credit unions might put into place to help their members escape from subprime loans. Even though few CU have made the sorts of subprime loans that have been implicated in the continuing mortgage crisis, they are still in the position of trying to help members restructure or refinance loans made by other financial institutions or finance companies.