CUNA strongly supports the goal of facilitating responsible innovation and FHFA’s efforts to identify barriers and challenges in implementing fintech in the housing finance ecosystem. CUNA sent comments in response to an FHFA request for information on fintech in housing finance.

“Credit unions support efforts related to new technologies that allow for more consumer-friendly experiences, and enhanced risk management processes,” the letter reads.

CUNA’s suggestions include recommending FHFA:

• Require Fannie Mae and Freddie Mac to require electronic title data, which would reduce costs and make the process quicker and more efficient for all financial institutions, particularly smaller financial institutions.
• Use Fannie and Freddie as a vehicle to prompt needed technological-related changes to benefit both consumers and lenders.
• Consider how to streamline asset and financial verification vendor process by balancing the need for vendors to help collect this information with consumer concerns and preferences about how to share their information.
• Consider whether some requirements can be waived if they prevent a lower risk-basis or do not make sense for a certain situation.
• Remove the Fannie and Freddie criterion to consider whether an applicable home is currently in a portfolio.
• Work with credit unions to consider where technological advancements can be made in this area.
• Consider additional means of responsible and measured oversight over fintech firms to ensure they are complying with strict risk-mitigation standards, among other key safeguards designed to protect consumers and the housing finance system as a whole.
• Consider additional broad-based technological upgrades to the Federal Home Loan Banks.