WASHINGTON--As lawmakers consider ideas to help make homeownership more accessible and affordable nationwide, America’s Credit Unions called on lawmakers to support legislation that includes credit unions in the definition of Community Financial Institutions (CFIs).
This would allow credit unions to be members of their regional Federal Home Loan Bank (FHLB).
Sent in advance of Wednesday’s House Financial Services Subcommittee on Housing and Insurance hearing to examine homeownership and the secondary mortgage market, the letter called for lawmakers’ support in expanding credit union access to key housing finance programs and preserving a level playing field in the mortgage market.
Allowing credit unions to qualify as CFIs for membership in regional FHLBs expands access to critical liquidity and housing programs, such as the Affordable Housing Program and Community Investment Program, and would help make homeownership more accessible and affordable, ACU said.
In the letter, America’s Credit Unions Senior Vice President of Government Affairs Greg Mesack also outlined recommendations for the future of government-sponsored enterprises (GSEs), emphasizing their importance in providing credit unions with a reliable way to fund mortgage loans and compete with larger financial institutions.
“We stress that the post-conservatorship path for the GSEs must keep a true level playing field for every lender, regardless of size, keep mortgage costs steady and predictable, and maintain the Federal Housing Finance Agency (FHFA) as a strong, independent regulator,” added Mesack.