WASHINGTON – CUNA economist Bill Hampel said he thinks homeowners will eventually see some TARP funds or other governmental relief dedicated to restructuring troubled mortgages; however, the issue is more complex than people realize, and as a result, finding a solution will be a slow go for government and industry officials.

“In theory, if a borrower is underwater, if they can reduce their mortgage balance to 100% loan to value, or reduce the payment to an affordable level, they’ll be okay,” Hampel said. “But what if you have someone who’s LTV is 110%, and they’re still perfectly capable of making payments? Or what about someone with 35% LTV, who can’t make the payment? Should these people receive assistance? It sounds better to rework rather than foreclose, but how to define who can afford their mortgage and who can’t is really difficult.”

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.