We did not sign up for the treasury modification program. We didn't want to be tied into it. We are working intently with our troubled borrows in creative ways. There are some that just won't make it, but it won't be because we haven't tried. I don't think CUs need incentive to help our members, and I think people that can pay don't need incentives to keep their homes.

SDCCU started modifying loans in late 2007 using Fannie Mae's Foreclosure Prevention Guidelines and in 2008 added Announcement 08-31 to our guidelines. We have modified nearly 4% of our real estate loans.  The Home Affordable Modification Program (HMP) is very complicated and we've found that only one in six of our member requests qualify.  This hardly makes it worthwhile to deal with the Fed's reporting and complicated guidelines.

We will integrate some aspects of the program into our Workout program.  That said, we will still complete the HMP Registration process and believe that may help us get out of a new CA law adding another 90 days to the foreclosure process.

Yes, we are servicing these mortgages according to the FNMA Announcment 09-05R.  We do not service for Freddie so we are following FNMA's guidelines.  I am with IBM Southeast Employees' Federal Credit Union in South Florida.

CitizensFirst Credit Union did not sign up for the treasury modification program for the same reasons listed by Valerie and Scott.  We continue to work with our Members on an individual basis, and prefer to retain as much flexibility with the solutions that we are offering by not signing up for the program.

Check out the FDIC Modification program and NPV model.  Very easy to apply the guidelines and makes HAMP even less appealing.