ALEXANDRIA, Va. – Credit unions wanting to apply for loans to help them rewrite mortgages of their low- and middle-income members now have until December 29 to do so.
Credit unions will apply for funds that originate from the Central Liquidity Facility, through corporate credit unions under the Credit Union Homeowners Affordability Relief Program, which originally had an application deadline of today. The program is designed to help credit unions lower rates so that borrowers won’t pay more than 38% of their monthly income on their mortgages.
The CLF will provide advances to eligible credit unions to invest in a CU HARP Note guaranteed by the NCUSIF.
The criteria for mortgage modification are: Target payment-to-income ratio of 31 to 38%; minimum mortgage interest rate of 3%; maximum household income of 150% of medium income for the ZIP code; and verified owner occupied residence.
The $2 billion fund, which is scheduled to begin distributing money in January, is expected to help approximately 10,000 low-and middle-income credit union members, according to the NCUA.
For additional information on the program, go to: www.ncua.gov/CLF/index/htm.