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NAFCU President and CEO Dan Berger on Friday shared with leaders of the Senate Banking and House Financial Services Committees a series of principles important to credit unions regarding housing finance reform, including guaranteed access to the secondary mortgage market.

"NAFCU understands that this is a complex issue that is expected to be a priority in the next Congress and with the incoming Trump administration," Berger wrote. "We welcome the opportunity to work with you as you move forward on comprehensive, thorough, and prudent changes to our nation's housing finance reform system."

Berger's letter was sent to Senate Banking Committee Chairman Richard Shelby, R-Ala., Ranking Member Sherrod Brown, D-Ohio, House Financial Services Committee Chairman Jeb Hensarling, R-Texas, and Ranking Member Maxine Waters, D-Calif.

In addition to guaranteed, unfettered access to the secondary mortgage market, the principles Berger outlined include (among others):

• the government should issue explicit guarantees on the payment of principal and interest on mortgage-backed securities;
• the merging of Fannie Mae and Freddie Mac into one entity could work provided it meets the needs of credit unions;
• the government-sponsored enterprises should not be fully privatized at this time because of concerns that small community-based financial institutions could be shut out from the secondary mortgage market;
• any reforms to the housing market must take into account possible consequences to the health and reliability of the Federal Home Loan Banks; and
• the GSEs should continue to function, whether in or out of conservatorship, and honor the guarantees of the agencies at least until they repay their current government debts.