MERIDEN, Conn. (2/21/13)--The Credit Union League of Connecticut testified Tuesday before state lawmakers that a bill on the foreclosure mediation process would add unnecessary levels of mandated bureaucracy in the foreclosure and mediation process.
In a Connecticut State General Assembly hearing, league President/CEO Tony Emerson testified on behalf of the 125 state- and federally chartered credit unions that would be affected if the measure passes in its current form.
"The bill prescribes certain actions that may hinder the processes already used by credit unions as they diligently work to help their members remain in their homes," Emerson said.
"In addition, there may be 'unintended consequences' in the form of added provision expenses, resulting in unnecessary incurred expenses that would further deteriorate the bottom lines of a fragile, but slowly recovering economy," he said.
The bill was introduced to attempt changes in the mediation process of foreclosures, but one of its provisions would extend the process. As a result of testimony at the hearing, the committee is considering ways to amend the legislation, the league said.
Measures involving the foreclosure mediation process have cropped up in several cities and states and in congressional committees as a result of practices of mortgage originators and servicers during the housing crisis.