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Ginnie Mae President Ted Tozer promoted a continued government role in housing finance and encouraged credit unions to partner with his organization in remarks Friday during the closing general session of NAFCU's Congressional Caucus.

Tozer said a government role is essential to ensuring the continued availability of a 30-year, fixed-rate mortgage product. Looking back to the 1980s, he said the private label market in these loans was never strong and is not strong today. Yet the market for such loans "is still there," he said. "The government's involvement is really needed."

He discussed the Federal Home Loan Bank Chicago Conduit program unveiled last year to provide mortgage lenders, particularly small ones, direct access to the secondary mortgage market. Through the program, the Chicago FHLB issues securities guaranteed by Ginnie Mae and backed by mortgages originated by member institutions.

He said participating institutions will obtain better pricing for loans through the conduit than through the sale of whole loans. Asked during Q&A about broader participation, Tozer told Caucus attendees the program will grow to accommodate loans from members of all the FHLBs.