WASHINGTON — NAFCU praised the plan unveiled yesterday by NCUA Chairman Michael E. Fryzel to use $2 billion from the Central Liquidity Fund to pay for mortgage relief for low-and middle-income credit union members.
"As we have strongly advocated in the past, we believe it is critical that the health of the National Credit Union Share Insurance Fund is not jeopardized. NAFCU deeply thanks you for implementing a program that does not draw on funds from the NCUSIF and consequently place the NCUSIF at increased risk," NAFCU President Fred Becker wrote in a letter sent to Fryzel last night.
Under the Credit Union Homeowners Affordability Relief Program 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.
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