WASHINGTON (3/13/09)—Credit unions can get the latest information on the Obama administration’s recently announced loan modification and refinance program via an April 2 audio conference call offered by the Credit Union National Association (CUNA). Key speakers will include Laurie Maggiano, senior policy advisor for the U.S. Treasury Department’s Office of Financial Stability, who will address issues surrounding the loan modification program. That plan is intended to allow borrowers who are struggling or unable to make their payment to modify their loans so that payments are affordable. Speakers from Fannie Mae and Freddie Mac, to be announced soon, will address the refinance aspects of the administration program, designed to help mortgaged homeowners who are current on their payments, but unable to refinance their loans because of decreased home values. Under the loan modification plan:
* Borrowers may be offered rate reductions to as low as 2%, extending the term of the loan up to 40 years, and possibly forbearing or reducing the principal. Incentives are provided by the government for lenders, servicers, and borrowers to participate.
Under the refinancing provisions:
* For loans owned or securitized by Freddie and Fannie, borrowers will be able to refinance loans with balances up to 105% of the value of their house, up from the current limit of 80%.
Registration information for the 90-minute, 3:30 p.m. (ET) audio conference will soon be available. Watch CUNA’s News Now
for more details.