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May 14, 2013 – NAFCU Executive Vice President of Government Affairs Dan Berger wrote the leaders of the Senate Banking Subcommittee on Securities, Insurance and Investment in advance of today's hearing on housing finance reform, to remind them that reform must allow credit unions access to the secondary mortgage market.

Berger wrote that the secondary mortgage market "is critical in enabling credit unions to serve the mortgage needs of their 95 million member-owners across the country. As the housing market continues to recover from the financial crisis, it is especially critical that lawmakers and regulators strike the necessary and proper balance in terms of a government role in the housing finance sector."

Berger emphasized NAFCU's concerns about the FHFA's recently announced policy that would limit future Fannie Mae and Freddie Mac loans to those that meet qualified mortgage requirements – a policy that could hurt borrowers in rural and underserved communities. He wrote, "The end result is that a number of otherwise financially healthy borrowers, who do not meet the stringent qualified mortgage standards for one reason or another, may be denied a mortgage, and the housing market and the secondary housing market will contract, further exasperating the issues facing all involved parties."

Berger also reminded subcommittee Chairman Jon Tester, D-Mont., and Ranking Member Mike Johanns, R-Neb., that housing finance reform must prioritize loan quality over volume so smaller credit unions will not be discriminated against. He said that loan quality and underwriting standards are more important than volume for a healthy and efficient secondary market.