WASHINGTON—Policymakers should cement recent government-sponsored entity (GSE) reforms and look to complete additional necessary reforms, CUNA told the House Financial Services Committee this week.
CUNA and other trade organizations have sent a letter for the record in advance of a HFSC hearing on the two GSEs, Fannie Mae and Freddie Mac, which have been operating under federal conservatorship since the recession.
“Together, we urge policymakers to lock in recent reforms to GSEs and complete the necessary additional reforms to protect taxpayers, provide liquidity and promote stability while taking care not to roll back aspects of GSEs’ operations that are supporting the foundation of the housing market,” the letter reads. “Only through such efforts can we ensure an affordable, accessible housing finance market that works for American homeowners and renters alike.”
CUNA said reforms put in place during conservatorship that have better positioned the GSEs to continue to play their role in facilitating mortgage liquidity include:
- Pricing parity across lenders
- The transfer of risk away from taxpayers
- A new infrastructure for the single-family secondary market
- Support for strong and sustained liquidity in the multifamily rental market
CUNA added that it supports housing finance reform that provides equitable access and pricing to secondary market liquidity for lenders of all sizes and charter types, and which fosters access to affordable and predictable mortgage products for homebuyers.
Following the hearing, NAFCU President and CEO Dan Berger said, “We support the overarching goal of Chairman Hensarling and Rep. Delaney’s GSE reform draft to create an equal playing field in the single-family mortgage market. As Congress gears up for housing finance reform and considers this legislation and other approaches, it is important that vibrant competition remains throughout the system and that credit unions maintain unfettered access to the secondary mortgage market and fair pricing based on loan quality, not quantity.”