ALEXANDRIA, Va. (3/18/08)—The National Credit Union Administration (NCUA) is encouraging federally insured credit unions servicing securitized subprime adjustable rate residential mortgages to utilize the HOPE NOW alliance’s loan modification standards to report foreclosure prevention efforts. HOPE NOW is an alliance of major mortgage servicers, mortgage counselors, government officials and non-profit groups intended to develop strengthened efforts to help struggling homeowners keep their homes. It was formed under the direction of the Treasury Department in October 2007. In a letter to federal credit unions (Letter No. 08-CU-05), NCUA Chairman JoAnn Johnson wrote that the HOPE NOW reporting format will assist industry efforts of measuring foreclosure prevention activity by standardizing data fields regarding modifications of subprime adjustable rate residential real estate loans. Further, she said, it will help to foster more transparency throughout the securitization market as the financial industry moves forward collectively through this current mortgage crisis. “The NCUA supports the data collection efforts related to the HOPE NOW alliance and believes prudent workout arrangements are generally in the long-term best interest of both the credit union and the borrower,” the letter said. Johnson added that her agency also encourages federally insured state-chartered credit unions to be responsive to other data and information requests designed to track loss mitigation efforts. She said those efforts include the State Foreclosure Prevention Working Group, formed in the summer of 2007 by the offices of 37 state attorneys general and several state banking regulators to encourage solutions to the growing foreclosure crisis.