CUs Want Treasury to Buy Distressed Mortgages

Pressure is continuing to mount for a credit union-centric assistance program in the wake of the Treasury Department pulling the plug on its plan to use $700 billion in government money to buy distressed mortgage assets. According to a report in The Credit Union Journal, canceling the purchase of troubled mortgages effectively leaves the CU industry out of the bailout. These non-profits are not eligible for Treasury's capital purchase program where the government buys stakes in depositories through the acquisition of preferred shares. Credit union officials told CUJ that the bailout bill was sold to Congress as a program to buy distressed mortgage assets. "Right now we're still urging Treasury to continue the congressional intent of the program," said Brad Thaler, senior lobbyist for National Association of Federal Credit Unions. "The Treasury's announcement today causes us concern," said Credit Union National Association president Dan Mica. "Although the Economic Emergency Stabilization Act explicitly includes America's credit unions, the implementation of the program thus far has not included credit unions, and the Treasury's announcement makes it unclear how credit unions will be included."