April 14, 2014 – NAFCU President and CEO Dan Berger and the CEOs of the Independent Community Bankers of America and CUNA on Friday jointly reminded Senate Banking Committee leaders of the need for small institutions to have equal, competitive access to the secondary mortgage market in any future housing finance system.In a letter to committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho, the chief sponsors of a draft reform measure currently under discussion, the trade leaders also urged lawmakers to be mindful of the costs of transitioning to a new housing finance model.The Johnson-Crapo draft is set for committee mark-up April 29. If it gets through committee, the next step will be action by the full Senate, which could take some time as this year’s schedule is winding down. The housing finance reform discussion is ongoing.The draft “Housing Finance Reform and Taxpayer Protection Act” calls for a wind-down of Fannie Mae and Freddie Mac and creation of a new mortgage insurance entity, the Federal Mortgage Insurance Corp., which would be authorized to create one or more mutual companies to facilitate access for lenders, including small lenders like credit unions, to the secondary mortgage market. It also sets up a series of new fees and plan for transferring Fannie and Freddie funds to help capitalize the new entity.The letter to Johnson and Crapo makes seven recommendations for the draft plan:
Berger and the others also thanked the committee leaders for their “exceptional outreach” efforts on housing finance reform.