Hood Discusses “Making Home Affordable” Loan Modification Program With Virginia Credit Unions
March 6, 2009, Alexandria, VA – National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood today addressed the NCUA Office of Small Credit Union Initiatives Workshop in Richmond, VA. With the new programs implemented within the credit union industry in order to deal with the current economic crisis facing all financial institutions, Mr. Hood took this opportunity to discuss the most recent developments with leaders from small credit unions across Virginia.
NCUA, in conjunction with the other federal financial regulatory agencies, issued a statement of support for the recently approved legislation dealing with distressed mortgages. The Vice Chairman reiterated the fact that NCUA encourages credit unions that service or hold residential mortgage loans to participate in the “Making Home Affordable” Loan Modification Program. The goal of this program is to promote sustainable loan modification for at-risk homeowners.
“The ultimate objective is to assist responsible homeowners avoid foreclosure and reduce the descending home values across the country,” said Hood. For details regarding this program, please visit the U. S. Treasury website at http://www.ustreas.gov/press/releases/tg48.htm.
Vice Chairman Hood also referenced the announcement made today by NCUA Chairman Michael E. Fryzel regarding modifications made to the NCUA Call Report in order to provide a more accurate picture of expenses as they relate to the Corporate Stabilization Program. In essence, the report will now show the expense resulting from the stabilization action as a separate line item on the Income Statement within the Call Report. Furthermore, it will show the net income prior to the stabilization expense as well as after this expense is incurred.
In closing, Hood told the attendees that a letter to credit unions will be issued with additional details regarding the new version of the 5300 Call Report, and he encouraged everyone to visit the NCUA website at www.ncua.gov as it is constantly updated with recent developments.
The National Credit Union Administration is the independent federal agency that regulates, 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 over 89 million account holders in all federal credit unions and the majority of state-chartered credit unions.
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