Credit unions and other small lenders must have access to a robust secondary mortgage market, CUNA Associate Director of Advocacy Robert Henson told attendees of the Consumer Federation of America’s Financial Services Conference Friday. Henson spoke on a panel about the future of mortgage finance after Freddie Mac and Fannie Mae.
“There’s a reason lenders of all shapes and sizes need access to secondary markets. More borrowers are looking at credit unions and other types of financial institutions to get their mortgages,” Henson said. "Credit unions’ average mortgage loan amounts are less than those at a typical bank. Credit unions serve a different segment of the population, and in order to be able to continue, they need to be able to participate fully in the secondary market.”
He added that credit unions need equitable access to a system that will accommodate member demand for long-term, fixed-rate mortgage products. In 2016, credit unions originated more than $140 billion in mortgages, 8% of the total market.
Henson also noted that CUNA supports the following housing finance reform principles: