CUNA supports the creation of an efficient, effective and fair secondary housing market with equal access to lenders of all sizes, CUNA wrote to Senate Banking Committee leadership Thursday. The letter was sent for the record of the committee’s hearing on the status of the housing finance system. Federal Housing Finance Agency Director Mel Watt was the sole witness at that hearing.
“As member-owned, not for profit financial cooperatives, many credit unions offer mortgages to satisfy member demand, and credit unions represent an increasingly significant source of mortgage credit nationally,” wrote CUNA President/CEO Jim Nussle.
Credit unions that elect to sell mortgages into the secondary market do so for a variety of reasons, and as such, have a deep interest in the structure of the housing finance system going forward, the letter reads.
CUNA laid out several principles that should govern any reforms to the secondary market, emphasizing strong independent oversight of the system, equitable access and pricing for lenders, regardless of volume, the right of credit unions to retain servicing rights for loans sold into the secondary market and continued access to affordable products like the 30-year fixed-rate mortgage.
As Congress turns attention towards housing finance reform this year, CUNA will remain engaged to ensure these principles and others form the basis of a reformed housing finance system.