The Government National Mortgage Association (GNMA, or Ginnie Mae) issued an amendment to its mortgage-backed securities guide removing credit unions’ categorization as non-bank mortgage lenders and recognizing them as insured depositories regulated by prudential regulator. CUNA has engaged with Ginnie Mae on this topic several times in recent months to get the categorization altered.
Ginnie Mae excluding credit unions from the definition of “depository institutions” and “banks” was in contradiction to credit unions’ being subject to regulation, have broad and stable access to liquidity, and are subject to capital requirements by NCUA.
“We thank NCUA for listening to our concerns and correcting credit unions’ strange treatment as non-bank mortgage lenders.”, said CUNA President/CEO Jim Nussle. “This change properly recognizes credit unions’ long history of safety and soundness.”
CUNA Senior Director of Advocacy and Counsel Elizabeth Sullivan detailed CUNA’s concerns with the incorrect categorization of credit unions in an op-ed in August 2021. CUNA also responded to a request for information and met with Ginnie Mae President Alanna McCargo in March.