CUNA raised several pertinent credit union issues with new Government National Mortgage Association (GNMA) President Alanna McCargo in a letter Thursday. McCargo was confirmed to lead the agency in December.
Ginnie Mae has long excluded credit unions from its definition of “depository institutions,” which CUNA says has no statutory basis.
“This treatment groups credit unions with non-insured, non-depository monoline mortgage lenders with which credit unions share little in terms of structure, operation, governance, risk, mission or accountability,” the letter reads. “Over time, this oversight has led to negative outcomes for individual credit unions that issue for Ginnie Mae, which has often been dealt with on a one-off basis. However, the issue is also well known even by credit unions which do not issue for Ginnie Mae and has created a perception that Ginnie Mae does not understand credit unions or is difficult to work with.”
CUNA has met with Ginnie Mae several times in recent months about this issue.
CUNA also urges Ginnie Mae to adopt separate capital requirements for credit unions that defer to NCUA’s capital requirements.
“This would align Ginnie Mae’s capital requirements with NCUA’s, reducing additional burden on credit unions while also ensuring that credit union issuers for Ginnie Mae are sufficiently well capitalized to protect Ginnie Mae and American taxpayers from loss,” the letter reads.