Fryzel Commends President’s Mortgage Plan
February 20, 2009, Alexandria, Va. – National Credit Union Administration Chairman Michael E. Fryzel welcomed President Obama's "Homeowner Affordability and Stability Plan" as an important and positive step in the overall federal efforts to assist struggling homeowners during this time of economic dislocation.
"The President's initiative is a welcome demonstration of the federal government's recognition of the problems that have resulted from the continuing declines in the housing market. The plan breaks new ground in several important respects, and puts more resources toward helping borrowers with refinancing options. And I am gratified to note it contains similarities to the CU Homeowners Affordability Relief Program (CU HARP), such as the refinancing feature and focus on owner-occupied, non-speculator mortgage holders. I encourage credit unions to remain focused on helping their members by taking advantage of these mitigation efforts. This pro-consumer focus is a natural fit for the credit union industry," commented Fryzel.
Specific elements of the President's plan include:
-Enhancing affordability by helping "responsible homeowners" lower their interest rate through a refinance with Fannie Mae or Freddie Mac;
-Reducing monthly payments through "a low-cost refinancing" that would lower mortgage payments by reducing the interest rate;
-Stabilizing neighborhoods by slowing the foreclosure rate; and
-Protecting responsible homeowners by assisting households at risk of imminent default despite being current on mortgage payments.
NCUA is analyzing the President's plan and participating in related federal working groups to determine how it will apply to credit unions.
The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, also operates and manages the National Credit Union Share Insurance Fund (NCUSIF), insuring the deposits of nearly 89 million account holders in all federal credit unions and the majority of state-chartered credit unions. NCUA is funded by credit unions, not federal tax dollars.
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