CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Contact

News

Home » CUNA strongly supports HUD’s ‘40-year modification’ proposal
Policy & Issues

CUNA strongly supports HUD’s ‘40-year modification’ proposal

May 31, 2022
Mortgage subservicing: What is it, and how can it work for my CU?

CUNA strongly supports the Department of Housing and Urban Development’s (HUD) proposal to increase the term limit for modification of Federal Housing Administration (FHA) mortgage loans to 40 years. HUD’s current regulations prescribe FHA loan servicers may modify a loan for a term of no more than 30 years (360 months).

CUNA notes that NCUA allows for 40-year mortgages—or longer—with specific board approval, and the 40-year modified mortgage is already permitted by Fannie Mae and Freddie Mac. The U.S. Department of Agriculture (USDA) allows for certain loan modifications of up to 40 years, and Ginnie Mae has established a pool type to support securitization of modified loans with terms up to 40 years.

“Credit unions report that the increase in the term will be a helpful tool for assisting credit union members struggling to make their mortgage payments and will allow credit unions to extend the same opportunities to modify their mortgage to members who rely on FHA-loans, particularly those who are low-income and first-time homebuyers,” the letter reads.

“In addition to creating parity for credit union members, aligning the term limits for modifications across Fannie Mae, Freddie Mac, USDA, and FHA lending creates operational ease for mortgage servicers,” it adds.

CUNA also notes the increase in maturity term limit will give meaning and effect to Ginnie Mae’s established pool type of loans, which should “help increase available liquidity for FHA lenders working to assist homeowners.”

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: See the West winner and vote for the South champ

  • Compliance: FinCEN issues BOI reporting guidance

  • Bill would establish ‘appropriate compliance timeline’ for section 1071

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which South Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us