CUNA supports the creation of an efficient, effective and fair secondary market with equal access for lenders of all sizes, it wrote to the House Financial Services Committee Thursday. The letter follows up a joint letter CUNA sent Wednesday to the committee for its hearing on government-sponsored entity (GSE) reform.
“Credit unions are significant participants in the secondary mortgage market. Particularly when rates are low and rising, and because they have fewer tools to mitigate interest rate risk, credit unions today rely on a robust secondary mortgage market to manage their balance sheets and promote safety and soundness in the housing finance sector,” the letter reads. “Access to a highly liquid secondary market with relatively low transaction costs is vital for the health of credit union mortgage lending and the housing market overall.”
CUNA believes a secondary market must adhere to the following principles: