Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Washington
Royce Cramdown not in CUs interest
WASHINGTON (2/27/09)—Mortgage cramdown is not in credit unions’ best interests, according to Rep. Ed Royce (R-Calif.). Royce commented on a cramdown bill--which was expected to be voted on Thursday but was moved to next week—during a speech at the closing session of the Credit Union National Association (CUNA)’s Governmental Affairs Conference. The bill would allow bankruptcy judges to alter terms of mortgages nearing default. Like several other policymakers who expressed their opposition to the proposed legislation during the conference, Royce said cramdown would lead to higher interest rates. The House delayed its scheduled cohsideration of the bill Thursday. Royce also noted that cramdown would send a message to society that it’s okay to “walk away from contractual agreements.” “Should we allow breach of contract?” Royce said. “There would be adverse consequences in the availability of loans.” Investors would fear putting their money into the market, he added. Credit unions’ conservative lending standards sharply contrast the over-leveraging of other financial institutions. Credit unions are exemplary in their standards, and they know how to treat borrowers, Royce said. Subjecting credit unions to the Community Reinvestment Act (CRA) would be a “grave mistake,” Royce added, and said he did not support mark-to-market accounting. “We need to make sure credit unions are not punished for other’s mistakes,” he said. Credit unions should spread their awareness to Capitol Hill, so legislators understand how much credit unions mean not only to the U.S.—but overseas. “Credit unions work—if it’s in Orange County, Calif., or Cape Town, South Africa,” he said. “The credit union movement brings capital to the communities who need it most.” Overall, Royce said he is confident that credit unions will survive tough economic times. “I know we’re going to get out of this debacle with credit unions stronger, and ready to go out and create economic recovery,” he said.
Other Resources

RSS





print
News Now LiveWire
Consumer spending is slumping #Market #Economy http://t.co/RI4HS68IuJ
13 hours ago
April is #NationalFinancialLiteracyMonth & @TheNCUA Chair Matz urges #creditunions to help members learn to manage/protect their finances.
14 hours ago
Fed. FI regulators' statmnts on compromised credentials/destructive malware #cybersecurity http://t.co/f4uTBDm1PU http://t.co/zP5Iw6VxZc
16 hours ago
Home prices rising faster than wages: @RealtyTrac #NewsNow #Market http://t.co/wa74mnw3Cu
17 hours ago
.@Nussle dropped by the @ACUMuseum recently. Read about his visit http://t.co/bYe8RRgYLP
18 hours ago