Donovan covers new GSE fee, House USPS actions in Advo Update

August 17, 2020

CUNA continues its work opposing the new refinance fee from Freddie Mac and Fannie Mae, CUNA Chief Advocacy Officer Ryan Donovan says in this week’s Advocacy Update video. CUNA has already responded to the proposed fee by writing Federal Housing Finance Agency leadership and joining with a broad coalition of housing, financial services and pubic service interest groups in a statement of opposition.

“This fee is going to raise costs for families trying to make ends meet during this challenging time and it conflicts with the administration’s recent executive action  urging federal agencies to take all measures within their authority to support struggling homeowners,” Donovan said.

Donovan added that Congress and senior administration officials have also expressed concerned, which is “the type of pressure that’s going to be essential to get FHFA and the GSEs to delay or withdraw this fee.”

He also noted the major political happening this week, as the Democratic Party will nominate former Vice President Joe Biden for president and Sen. Kamala Harris (D-Calif.) for vice president during a virtual convention.

While CUNA does not make endorsements in presidential elections, Donovan noted that both Biden and Harris, in addition to President Donald Trump and Vice President Mike Pence, have all been supportive of credit unions during their time in public service.

“The good news is, whatever the outcome of the election credit unions are going to have leaders in the White House who have a history of being supportive of a not-for-profit cooperative financial services option in the United States,” he said.

Donovan also noted that the House will return to Washington, D.C. this week to consider legislation and other matters related to the recent U.S. Postal Service changes. He added this issue could impact credit unions, as any degraded services from the USPS could affect credit unions’ ability to contact members via mail.