Newsroom
NAFCU responds to FHFA’s single-family social bond policy
NAFCU Senior Regulatory Affairs Counsel Aminah Moore wrote to the Federal Housing Finance Agency (FHFA) in response to the agency’s request for information (RFI) regarding Fannie Mae and Freddie Mac’s – the government-sponsored enterprises (GSEs) – single-family social bond policy. Moore expressed NAFCU’s support for the creation of a single-family social bond policy, while offering additional remarks and suggestions to the FHFA.
In the letter, Moore urged the agency to use money from single-family social bonds to purchase non-confirming loans. Additionally, she recommended the FHFA annually report on the ongoing borrower impact and the number of non-conforming loans bought on the secondary market, noting “[i]t is necessary to convey the impact of a program that is intended to assist the underserved.”
Moore also noted that NAFCU encourages the agency to incentivize mortgage originators by lowering fees or offering pricing adjustments for the single-family social bonds. She added that these savings will be passed to borrowers and will allow credit unions to keep serving low-to-moderate income and underserved borrowers.
Of note, NAFCU wrote to the agency earlier this week on the agency’s proposal to amend several provisions in the Enterprise Regulatory Capital Framework (ERCF) for the GSEs.
NAFCU will continue to advocate on behalf of the credit union industry and its members' best interests in the housing finance system.