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The House Financial Services Committee Wednesday held a hearing to provide oversight of the Federal Housing Finance Agency (FHFA) with Director Sandra Thompson as witness. Thompson shared updates on FHFA programs and initiatives and how the agency is working to promote an equitable housing finance system.

During questioning, Rep. Al Lawson, D-Fla., asked Thompson where the FHFA stands on creating pilot programs that will allow the government-sponsored enterprises (GSEs) to purchase more nonconforming loans from community development financial institutions (CDFIs). In response, Thompson explained that the FHFA earlier this year required the GSEs to submit Equitable Housing Finance Plans to identify and address barriers to sustainable housing opportunities.

NAFCU has strongly advocated on behalf of CDFIs and minority depository institutions and discussed related topics during a meeting with Thompson in February. The association has previously called for the FHFA to consider pilot programs that aide the GSEs in increasing opportunities for very-low, low-, and moderate-income individuals to purchase homes.

In addition, during the hearing Lawson noted the increase in threats posed to the housing finance system by climate change and asked Thompson what the FHFA is doing to confront those challenges. Thompson noted the FHFA examines climate change through the lens of natural disasters and the agency aims to position the GSEs so that they are well-equipped to handle these disasters. “Making sure that we have good programs in place to help borrowers in their time of need is very important,” said Thompson.

NAFCU has previously shared support for the FHFA’s incorporation of climate change into the GSEs governance, which improves climate data collection, analysis, and reporting. The association also encourages the FHFA to continue to participate in interagency collaboration to analyze climate change risks.

Ahead of the hearing, NAFCU wrote to the committee regarding several housing finance topics and outlined where the credit union industry stands. NAFCU will continue to work with the FHFA and GSEs to promote the existence of a housing finance system that fosters equity and allows credit unions to provide exemplary mortgage and lending services to consumers.