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Forclosure Relief Programs

March 26, 2010, Alexandria, Va. – Praising a new Obama Administration initiative to
help consumers avoid home foreclosures, National Credit Union Administration
Chairman Debbie Matz today encouraged the nation‟s credit unions to redouble efforts
to work with members who are seeking ways to deal with troubled mortgages.
“With their „people helping people‟ philosophy, America‟s credit unions have an
admirable record of assisting their members in times of financial stress,” said Matz.
“Now that an enhanced array of federal initiatives is available to mortgage lenders
helping homeowners stay in their homes, I urge credit unions to work closely with any of
their members who find their finances under pressure.”
“In these extraordinary times, when so many homeowners are underwater in their
mortgages through no fault of their own, I believe credit unions should evaluate every
possible remedy to help responsible borrowers – especially those who are victims of the
real estate market crash and those who are unemployed,” said Matz. “Advising
homeowners on how to deal with their troubled mortgages, and exploring options for
loan modifications, could help reduce the number of foreclosures. Stabilizing the
housing market remains a key element in promoting a stronger national economic
Matz issued the statement as the White House unveiled a package of plans to enhance
federal programs, through the Department of the Treasury and the Federal Housing
Administration, that seek to stem the tide of home foreclosures.
The NCUA Board took action in December 2009 to open the door for loan modifications
under the Treasury‟s Making Home Affordable Program. By extending the limit on
credit unions‟ second mortgages from 20 years to 30 years, the Board allowed credit
unions to match a second mortgage term to a 30-year first mortgage. “We should
ensure that credit unions have the tools they need to structure both mortgages in ways
that homeowners can afford,” Matz affirmed.
National Credit Union Administration
1775 Duke Street
Alexandria, VA 22314-3428
Media Contact: NCUA Office of
Public & Congressional Affairs
Phone: (703) 518-6330
Email: pacamail@ncua.gov
NCUA also participated in a federal interagency working group on the Making Home
Affordable Program. NCUA joined with federal bank and thrift regulatory agencies in
issuing a March 2009 statement encouraging all federally regulated financial institutions
to participate. That program‟s goal is to promote sustainable loan modifications for atrisk
homeowners in a way that appropriately balances the interests of homeowners,
servicers and investors.
NCUA is the independent federal agency that regulates, charters and supervises federal credit
unions. With the backing of the full faith and credit of the U.S. government, NCUA operates and
manages the National Credit Union Share Insurance Fund, insuring the deposits of over 90
million account holders in all federal credit unions and the overwhelming majority of statechartered
credit unions.

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