Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
CU lien priority under threat in Mo. legislature
JEFFERSON CITY, Mo. (3/4/14)--The Missouri Credit Union Association (MCUA) is working to prevent predatory tax-lien transfer bills from progressing past committee status in the state legislature.
 
The bills, each of which have been introduced in the House and Senate, would allow a third-party company that paid off delinquent property taxes on behalf of the owner to have lien priority ( Missouri Difference Feb. 27). The property-tax lender would get priority over the mortgage-holding financial institution should the owner become delinquent.
 
The companies look for homeowners who are delinquent on their property taxes and approach them with the premise they are helping them save their homes. The interest rates are high and the financial institutions are shoved to the back of the line should a foreclosure occur ( Forbes Jan. 1, 2013)  
 
Texas is the primary home of tax lenders, and the practice has become so predatory and widespread that its legislature is trying to better regulate it
 
"These loans are dangerous for consumers," said David Kent, MCUA director of state legislative affairs. "What many people don't understand is credit unions will work with members to protect their financial well-being and most importantly, to try and keep them in their home--even if they fall behind on their tax payments," he told News Now.


RSS print
News Now LiveWire
CUNA economist Schenk discusses regulators' focus on interest-rate risk. See CU Magazine: http://t.co/tW1p9rTSSv
1 hours ago
Fed issues annual report on general-use prepaid cards in gov't-administered payment programs. http://t.co/3zPhejSPZt
1 hours ago
Children in foster care face higher risk of identity theft via @NBCNews http://t.co/Dif0hCfBdA
1 hours ago
.@Cornerstone_CUL's leadership conference includes food drive for San Antonio food bank http://t.co/h2O8O4TxuD
2 hours ago
Worldwide #creditunion growth: Nearly 57K CUs now serve 208M members #NewsNow http://t.co/vrSv3Gvp7X
3 hours ago