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FOR IMMEDIATE RELEASE

Washington (July 20, 2017) –Charles Purvis, president and CEO of Coastal Federal Credit Union (Raleigh, N.C.), willtestifytoday on behalf of the National Association of Federally-Insured Credit Unions (NAFCU) before a Senate Banking Committee hearing on housing finance reform. Purvis will stress the importance of ensuring that any housing finance reform plan preserves credit unions' unfettered access to the secondary market, along with fair pricing conditions.

Purvis is testifying before the committee in today's hearing, "Housing Finance Reform: Maintaining Access for Small Lenders," which begins at 10 a.m. Eastern.

In his testimony, Purvis will share with the committee NAFCU's core principles for housing finance reform, which the association believes should be included in any reform effort to guarantee the continued safety and soundness of the credit union industry.

Purvis will underscore the importance of ensuring that large institutions not be given control of the market; and that any costs of a reformed system not become burdens on small lenders such as credit unions.

He will testify to the panel regarding credit unions' unique role in the housing market, with credit unions outpacing banks in terms of real estate loan growth since the economic downturn, and showing lower delinquency and charge-off rates.

Purvis will discuss the need for credit unions to have guaranteed access to secondary market sources, including Fannie Mae, Freddie Mac, Ginnie Mae and the Federal Home Loan Banks. In 2015, his testimony notes, 60 percent of the first mortgages credit unions sold on the secondary market were sold to the GSEs.

Coastal Federal Credit Union has been offering mortgage loans for the past 40 years. He says that until 2008, most of those mortgages were held in portfolio. "As demand grew and long-term interest rate risk came into play, we began to work with Fannie Mae to sell many of our loans into the secondary market," Purvis notes. "From 2008 to 2009, we experienced a 300% increase in the value of loans sold to Fannie Mae."

Purvis will argue for keeping key parts of the current housing finance system, including access to technology provided by the GSEs that helps small lenders. He will also push for preserving function of the GSEs' cash window as a single loan execution process.

Purvis will also highlight specific ways Congress can provide the credit union industry with regulatory relief in a future housing finance system, such as changes to the CFPB's qualified mortgage rule and through various requirements within the Real Estate Settlement Procedures Act and Truth in Lending Act.

The National Association of Federally-Insured Credit Unions is the only national trade association focusing exclusively on federal issues affecting the nation's federally-insured credit unions. NAFCU membership is direct and provides credit unions with the best in federal advocacy, education and compliance assistance. For more information on NAFCU, go towww.nafcu.orgor@NAFCUon Twitter.

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Falen Taylor
press@nafcu.org