Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
FFIEC releases loss mitigation guidance
WASHINGTON (8/7/09)--The Federal Financial Institutions Examination Council (FFIEC) on Thursday said that mortgage loan servicers “have an obligation to act in the best interests” of their clients and should not consider “the potential impact” of a loan modification on a first or subordinate lien mortgage. The FFIEC, which includes the National Credit Union Administration as well as other federal regulators, said that mortgage loan servicers should modify first lien mortgages or subordinate liens “when doing so would produce a greater anticipated recovery” to the lienholders “than not modifying the loan.” Failing to follow these standards “may be a breach of the servicer’s obligation” to their clients, the FFIEC statement warned. The joint agency release noted that it was a reiteration of guidance given in the past. Perhaps coincidentally, there has been a spate of negative attention to loan modification efforts by some of the nation’s mortgage lenders who critics charge could be doing more to help troubled mortgage holders avoid foreclosures on their homes.


RSS print
News Now LiveWire
Stay tuned for coverage of @CUNA's BSA conference which starts Sunday. #CUNABSA #CUNACompliance
1 Day ago
Today's the last day to complete @CUNA's Home Depot data breach survey http://t.co/UcB8G9bVXe #StoptheDataBreaches
1 Day ago
Brenda Davis of Cross Roads Ministries will walk through 83 communities during the Ending Hunger Walking tour. (2 of 2)
1 Day ago
The Ending Hunger Walking tour, coordinated by the Maine CU League, kicked off at Old Maine CU in Augusta today. (1 of 2)
1 Day ago
Darwin Brokke of Citizens Community CU represented the #CU Association of Dakotas at a housing summit hosted by @SenatorHeitkamp
1 Day ago