Earlier this year, we teamed with the Michigan Credit Union League to explore a critical issue facing all consumer finance organizations: home foreclosures. The results of this work were two reports: one which outlined ten policy recommendations to decrease the number of foreclosures and another which focused on the concept of shared-equity loan modifications.
Recently the National Credit Union Administration deemed the shared appreciation loan modification approach permissible.
The Michigan Credit Union League and Filene are interested in knowing if credit unions would be willing and interested in piloting the shared appreciation loan modification idea. If so, please contact me directly for details on this pilot project.
Our research indicates the current approaches to home foreclosure mitigation may be ignoring a growing portion of the population: those who are underwater on their mortgages. Shared appreciation loan modifications may be an innovative way to deal with this problem.
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