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Oct. 29, 2013 – NAFCU will closely monitor several hearings this week on housing finance reform and the funding of the Federal Housing Administration, which is seeking $1.7 billion from Treasury to meet a requirement of the Federal Credit Reform Act.

The hearing on housing finance reform is called "Housing Finance Reform: Essentials of a Functioning Housing Finance System for Consumers," and is being held today by the Senate Banking Committee. It will feature testimony from representatives from the Center for Responsible Lending, Genworth Financial, Inc., K & L Gates LLP, and the National Consumer Law Center. Also today, the House Financial Services Committee will hold a hearing on the FHA, subtitled "Implications of a $1.7 billion Taxpayer Bailout." It focuses on the agency's announcement in September that it needed $1.7 billion from the Treasury Department to comply with the Federal Credit Reform Act's requirements that credit agencies have enough reserves to cover anticipated future losses.

On Thursday, the Senate Banking Committee will hold a hearing on elements of a government guarantee for mortgage-backed securities. The hearing will include testimony from representatives from the Federal Reserve Bank of New York and the Mortgage Bankers Association, as well as an economics professor from the University of Maryland.

NAFCU continues to reach out to members of Congress to emphasize the importance of credit unions having guaranteed access to the secondary mortgage market, and fair pricing based on loan quality instead of size. Three related pieces of legislation have also been introduced on housing finance reform this year, including the Protecting American Taxpayers (PATH) ACT and the FHA Solvency Act.