WASHINGTON (10/2/13)--Credit union access to the secondary market must be maintained in any future housing finance market reforms, Credit Union National Association staff emphasized during a call this week with Federal Housing Finance Agency officials.
"The discussion between CUNA, credit unions and the agency was productive, and we will be following up on many of the issues covered during the call in future talks with the FHFA," CUNA Deputy General Counsel Mary Dunn said. The FHFA staff asked to meet with CUNA again very shortly to continue the discussions.
CUNA and credit union staff during the call suggested:
- The pricing policies of government-sponsored enterprises (GSEs) and their replacements should factor in credit unions' low delinquency and default rates;
- The GSEs and their replacements should purchase one loan as readily as pools of loans;
- The GSEs and their replacements should not require small issuers to use large aggregators to service their loans; and
- The GSEs and their replacements should purchase non-qualified mortgage loans.
FHFA staff updated CUNA and credit unions on the status of housing finance reform legislation, and asked for information on the challenges and opportunities housing finance reforms could create for community lenders, specifically in rural or underserved areas. Ways to maintain and maximize credit union relationships with the GSEs, and ways that smaller community lenders can maintain equal footing with their bigger competitors were also discussed.
Representatives from CUNA member credit unions on the call, included Harvard Employees CU President/CEO Eugene Foley, Alaska USA FCU Chief Lending Officer Jerry Reed, and CEFCU Vice President of Mortgage Lending Stacy Davis and Operations Manager Sara Blackburn.
Senior Vice President of Legislative Affairs Ryan Donovan, Assistant General Counsel for Special Projects Robin Cook and Associate General Counsel Jared Ihrig were also on the call which featured FHFA Division of Housing Mission and Goals Deputy Director Sandra Thompson and other members of the FHFA staff.