WASHINGTON (10/30/14)--The Credit Union National Association Tuesday called on the Federal Housing Finance Association (FHFA) to consider Americans' access to credit when setting housing goals for the government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac.
CUNA Deputy General Counsel Mary Dunn encouraged the FHFA "to continue to work to find the right balance between safety and soundness on the one hand, and credit availability for American consumers on the other."
"In the wake of the financial crisis, mortgage credit has become less available for many Americans as underwriting standards have increased and the 'qualified mortgage' (QM) has become the law of the land," she said.
Dunn made the remarks in response to FHFA's proposed 2015-2017 housing goals for the GSEs.
CUNA encouraged FHFA to continue allowing "certain non-QM loans to be sold into the secondary market," noting that they are "often backed by vigorous underwriting."
"As FHFA considers how to meet its statutory obligations related to making housing affordable to Americans, it is important that FHFA's support for the purchase of non-QM loans continues unimpeded," Dunn wrote.
CUNA also urged the FHFA to use a "broad interpretation" of the section of the Safety and Soundness Act which "ensure[s] that none of the housing goals cause financial instability" to Fannie Mae and Freddie Mac.
Access CUNA Comment Letters here.