April 15, 2014

NAFCU, FHFA talk CUs' role in housing finance

April 16, 2014 – Senior NAFCU staff accompanied association President and CEO Dan Berger during a meeting Tuesday with Federal Housing Finance Agency Director Mel Watt on housing finance reform and the role of credit unions in the secondary mortgage market.

During the meeting at FHFA headquarters, NAFCU representatives reiterated to Watt the need for small institutions such as credit unions to have equal, competitive access to the secondary mortgage market in any future housing finance system. Also discussed during Tuesday's meeting were guarantee fees, conforming loan limits and the notion of principal reduction.

NAFCU has warned against raising guarantee fees because the cost of borrowing will greatly increase and lending will inevitably slow down. NAFCU has also advocated for conforming loan limits to remain unchanged, warning that a decrease in these limits could negatively impact many mortgage borrowers. The association also emphasized the need to have Fannie Mae and Freddie Mac purchase loans that are more flexible than the qualified mortgage standard.

NAFCU continues to meet with White House officials on housing finance reform and recently weighed in on Senate Banking Committee Chairman Tim Johnson, D-S.D., and Ranking Member Mike Crapo's, R-Idaho, housing reform draft legislation.

Berger was accompanied in Tuesday's meeting by NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt, Vice President of Legislative Affairs Brad Thaler, Director of Legislative Affairs Jillian Pevo, Director of Regulatory Affairs Mike Coleman and Regulatory Affairs Counsel Angela Meyster.