WASHINGTON (10/21/15)--The Federal Housing Administration (FHA) announced a partial withdrawal of its proposal to establish a maximum timeline to file an insurance claim, representing a CUNA victory when it comes to removing barriers for credit unions.
The withdrawn provisions would have unfairly penalized credit unions for delayed claims, often for issues that were not under the credit union’s control.
CUNA strongly opposed the FHA’s proposal, calling it “overly harsh,” and had particular concerns that it was not well-publicized and had a short comment period.
In its Sept. 4 comment letter on the proposal, CUNA expressed concerns that the deadlines established by the FHA’s proposal “do not reflect today’s foreclosure environment.”
The partial withdrawal leaves the FHA still moving forward with provisions related to curtailing of interest and the disallowing of certain expenses incurred by a lender as a result of the lender’s failure to timely initiate a foreclosure action.
CUNA continues to work with the FHA to ensure the remaining provisions in the proposal will be implemented in a fair and equitable manner for credit unions.