WASHINGTON — NCUA Chairman Michael E. Fryzel said today his agency plans to tap the central liquidity fund to provide credit unions with funds so they can provide lower mortgage rates.
Under the credit union homeowners affordability relief program (CU HARP), the credit union, in exchange for the reduced likelihood of borrower default on the mortgage, would also match the rate break, doubling the benefit to struggling homeowners, the agency said.
"The consumer must not be left out of the broader government efforts to mitigate the housing and credit market dislocations. CU HARP is an effort to foster a solution whereby the NCUA and credit unions work together to assist distressed borrowers," Fryzel said in a statement.
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