Newsroom

During an event at the Urban Institute in Washington Wednesday evening, NAFCU's Ann Kossachev highlighted credit union lending in the manufactured housing market and the approach the government-sponsored enterprises should take as they move into serving this and other underserved markets.

Kossachev, NAFCU's regulatory affairs counsel, was part of a panel discussion on the challenges, opportunities and expectations the government-sponsored enterprises will have as they set out to serve the underserved under the Federal Housing Finance Agency's duty-to-serve rule.

NAFCU's Ann Kossachev (NAFCU photo)

The GSEs, under the FHFA rule, are required to adopt plans to improve the distribution and availability of mortgage financing for residential properties that serve very low-, low- and moderate-income families in three specified underserved markets – manufactured housing, affordable housing preservation and rural housing. These plans will become effective January 2018.

Kossachev gave NAFCU's recommendations for a more measured approach the GSEs should take as they enter these underserved market – particularly regarding the chattel loan pilot programs. In a letter to FHFA earlier this month, Kossachev noted some concerns regarding the GSEs' launch into chattel lending, among other initiatives.

She also gave general remarks about credit unions' commitment to and role in serving underserved markets and the credit union perspective on affordable and rural housing. She noted the challenges associated with these markets and the positive impact of Community Development Financial Institutions and the need to preserve funding for that program.