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NAFCU's Carrie Hunt emphasized the importance of a housing system that provides credit unions "unrestricted access to the secondary mortgage market" in a letter Tuesday to leaders of the Senate Banking Committee, which hears testimony today from Federal Housing Finance Agency Director Mel Watt.

"In addition to a healthy and viable secondary mortgage market that provides necessary access for community-based financial service providers like credit unions, Congress, in any reform effort, must put into place safeguards that will prevent discrimination based on type of institution, an institution's asset size or any geopolitical issues," Hunt, NAFCU's senior vice president of government affairs and general counsel, wrote in a letter to Senate Banking Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo, R-Idaho.

Hunt added that fair pricing based on loan quality – rather than volume – is one way to prevent discrimination against particular financial institutions.

Hunt also reiterated NAFCU's concerns about the proposal currently under review at FHFA regarding Federal Home Loan Bank membership criteria. NAFCU met with FHFA in early October to discuss the proposed rule's impact on credit unions. Hunt, in her letter, said the proposal "threatens to severely hamper credit unions' access to the valuable services the FHLBs provide."

NAFCU has also urged FHFA against increases in guarantee fees. "Raising g-fees would result in a negative impact on the housing market," Hunt wrote Tuesday. "The cost of borrowing will greatly increase and lending will inevitably slow down."

Today's hearing, slated for 10 a.m. Eastern, with Watt at the sole witness, will focus on "balancing stability, growth and affordability in the mortgage market."