NAFCU wants the Federal Housing Administration to come down harder on consumers who walk away from a mortgage commitment even though they would be able to make their mortgage payments.
The practice has become known as "strategic default" on housing loans and housing experts say they have come to represent a significant numbers of foreclosure cases each year. Consumers generally strategically default on mortgage loans where they believe they will never be able to recover their loan value.
NAFCU has sent a letter to the chairman and ranking member of the House Financial Services Subcommittee on Insurance, Housing and Community Opportunity in advance of an oversight hearing on the U.S. Department of Housing and Urban Development on Tuesday.
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