Compliance Blog

Yesterday, the U.S. Treasury some details of its Homeowner Affordability and Stability Plan.  Access the executive summary here.   The executive summary announces broad plans in a number of areas all designed to help keep consumers in their homes.  A major part of the plan would involve efforts to allow four to five million homeowners to refinance mortgages currently owned or guaranteed by Fannie Mae or Freddie Mac.  If your credit union does mortgage lending, I would give this a read. 

Here was one interesting tib-bit I found within the press release.  We've been getting a good number of calls lately about what regulators expect during loan modifications.   According to the release, Treasury will develop such guidelines.

Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC's pioneering work.  The Guidelines will be used for the Administration's new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance.  Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans' Affairs and the Department of Agriculture.