Refinancing promotions are a possibility, too, she continued adding that short-term loans allow borrowers to renegotiate with providers or to sell homes.

“There is an opportunity to engage new market segments or sourcing channels by offering expertise and products,” said Mendell, whose session was added on to the conference program at the last minute apparently reflecting heightened interest in the topic.

In the “role of rescuer,” CUs can be helpful in connection with recession rights for problematic loans secured by the borrower's principal dwelling or at the time of refinancing.

Borrowers, she noted, must receive two copies of their right to rescind a loan and if the notice is not provided, then the right of recession is extended for three years.

“A borrower must be put back in the place they were before entering into the loan,” she said, and then “have to secure other hopefully less onerous financing arrangements.”

Overall, as bad as the subprime mortgage meltdown is particularly affecting numerous providers with layoffs and cutbacks in southern California, the housing market despite the drop in prices and increase in inventory has not reached calamity stages.

“Those media headlines are a little scary,” said Mendell suggesting news coverage and mention of a housing collapse are overblown. A look behind the sobering data does show there are major problems in housing across California and elsewhere, but no one can say whether “we are near the bottom or may have already reached it.” –[email protected]