WASHINGTON–During testimony before the House Financial Services Committee at a hearing titled “A Legislative Proposal to Provide for a Sustainable Housing Finance System: The Bipartisan Housing Finance Reform Act of 2018,” one credit union CEO outlined reasons CUs support the proposal.
Rick Stafford, president and CEO of Tower Federal Credit Union in Maryland, told the committee the proposal has many positives, "including the requirement of strong capital standards, a guaranteed cash window for small lenders who are permitted to retain the servicing rights on their loans, the maintenance of a vibrant [Federal Home Loan Bank (FHLB)] System, and the preservation and enhancement of credit risk transfer transactions and the [Common Securitization Platform (CSP)]."
Stafford, who was testifying on behalf of NAFCU, also shared NAFCU's core principles for housing finance reform, which the association believes should be included in any reform effort to guarantee the continued safety and soundness of the credit union community.