WASHINGTON (7/11/14)--Credit Union National Association interim President/CEO Bill Hampel wrote to three U.S. representatives Wednesday asking for consideration for credit unions during the housing finance reform process.
The letter is addressed to Reps. John Delaney (D-Md.), John Carney (D-Del.) and James Himes (D-Conn.), sponsors of the Partnership to Improve Homeownership Act (H.R. 5055), which was introduced Thursday.
The bill would establish an insurance program through Ginnie Mae. All government-guaranteed, single-family and multi-family mortgage-backed securities would be supported by a minimum of 5% private sector capital, standing in a first-loss position. The remaining 95% of the risk would be shared equally between Ginnie Mae and a private reinsurer.
It would also wind down Fannie Mae and Freddie Mac, revoking their charter but allowing them to be sold and recapitalized as entities with different business plans without any of their current unique powers.
In CUNA's letter, Hampel thanks the congressmen for their support of housing finance reform, and praises their act for continuing the dialogue that will lead to the future mortgage finance system.
"As we have said throughout the housing finance reform debate, any legislation to reform the secondary mortgage market should ensure that credit unions have equal access to a well-regulated and well-capitalized secondary market, and should preserve the ability of borrowers to get mortgage products with predictable payments, like the 30-year fixed rate mortgage," Hampel's letter reads. "The new system should be durable enough to withstand economic distress and the transition to the new system should be reasonable and orderly."
Use the resource link below for the full text of the bill.