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 A GAO report issued Thursday
focuses on the FHA's insurance
activities, the subject of a
hearing slated next week in a
House subcommittee hearing.
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March 8, 2013 – A House Financial Services subcommittee continues its look into the housing market next Wednesday with a hearing examining mortgage insurance, and NAFCU will be paying close attention for any discussion impacting credit unions.
The hearing, held by the House Financial Services Subcommittee on Housing and Insurance, is titled “Mortgage Insurance: Comparing Private Sector and Government-Subsidized Approaches.” The hearing is expected to include discussion about the Federal Housing Administration’s role in residential mortgage loans and the contents of a report released Thursday by the Government Accountability Office that looks at all components of FHA’s guarantee functions.
Earlier this week, in a letter to the House Financial Services Subcommittee on Capital Markets and Government Sponsored Enterprises, NAFCU reiterated its support for a government guarantee of the principal and interest of mortgage-backed securities. NAFCU also continues to express its support for the FHA’s role in the housing finance market, including in any effort to reform the housing market. However, NAFCU would like to see lawmakers assert greater oversight over the FHA, particularly with respect to the entity’s three-year lockout period, which could encourage strategic defaults.
Next Thursday, NAFCU will focus on a House subcommittee hearing that will examine a GAO report on the Financial Stability Oversight Council. The House Financial Services Subcommittee on Oversight and Investigations is expected to address the issue of coordination among regulatory agencies.
In a previous report, the GAO suggested the FSOC needs to establish stronger interagency coordination on the issuance of rules affecting financial institutions – a view shared by NAFCU. Last year, NAFCU President and CEO Fred Becker wrote then-Treasury Secretary Tim Geithner, who headed FSOC, about the need for better coordination among the agencies, particularly with respect to rules impacting credit unions.