CUNA supports an efficient, effective and fair secondary mortgage market with equal access to lenders of all sizes, it wrote to Senate Banking Committee leadership Tuesday. CUNA’s letter was sent for the record of the committee’s hearing on the status of the housing finance system.
“Credit unions that elect to sell mortgages into the secondary market do so for a variety of reasons, but predominantly it is a tool to help them manage long term interest rate risk in order to continue to meet their members’ mortgage lending needs,” the letter reads. “Particularly today, with long term interest rates at or near historic lows but expected to rise, access to a highly liquid secondary market with relatively low transaction costs is vital for the health of credit union mortgage lending. Credit unions therefore have a deep interest in the structure of the housing finance system going forward.”
CUNA’s letter features the principals it believes must be present in a secondary market, which include: