WASHINGTON (3/25/14)--The Senate version of housing finance reform legislation could be marked up in the coming weeks, and the Credit Union National Association is preparing a comprehensive list of suggested changes and improvements for the Senate Banking Committee. That list will be forwarded to committee members later this week.
For now, CUNA's main concerns regarding the proposal include changes made to the Federal Mortgage Insurance Corp. and the establishment of the securitization platform. CUNA also has concerns regarding the governance of the securitization platform and the small lender mutual, as well as the 10% first loss coverage requirement.
"We were pleased to see that the legislative proposal incorporates our suggestion to increase the cap on the size of institutions which could be members of the small lender mutual from $15 billion to $500 billion in assets," CUNA Senior Vice President of Legislative Affairs Ryan Donovan said.
CUNA has had several meetings and conversations with Senate staff, the White House, credit union mortgage lenders and other financial services trade groups regarding the bill. While CUNA expects the Senate Banking Committee markup to happen before the Easter break, the timeline for consideration by the full Senate is uncertain.
The 425-page draft bill, released earlier this month, addresses how to overhaul the housing finance market, as well as on what to do with government-owned Fannie Mae and Freddie Mac.
CUNA continues to review the proposal to ensure the legislation will help maintain a functioning secondary mortgage market that provides credit unions equitable access and the ability to continue to offer mortgage products with predictable payments, like the 30-year fixed-rate mortgage.
"We also want to ensure that the transition to the new system is smooth," Donovan said.
For more on the proposal, use the resource links.