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Federal Housing Finance Agency Director Mel Watt said government-sponsored enterprises Fannie Mae and Freddie Mac will set a minimum for the number of substandard loans permitted before lenders are required to repurchase them.

Speaking at an event for the Mortgage Bankers Association in Las Vegas, Watt said, "we have listened closely to your concerns about the impact that loan repurchases have had on your businesses … To address this problem, FHFA and the Enterprises have worked to revise the Framework to ensure that it provides clear rules of the road that allow lenders to manage their risk and lend throughout the Enterprises' credit box."

The change will prevent lenders from being punished for a miscalculation or mistake on one single loan. Watt also discussed the proposals FHFA is working on with Fannie and Freddie aimed at expanding mortgage credit and protecting lenders from penalties.

The new programs would allow the GSEs to offer mortgages with down payments as low as 3 percent. NAFCU will monitor this initiative and keep members apprised of any developments that affect credit unions.

NAFCU continues to advocate for housing reform that would guarantee access for credit unions to the secondary mortgage market, and fair pricing based on loan quality rather than volume.