WASHINGTON—Credit unions support legislative solutions to improve access to housing and reduce gaps in homeownership rates, America’s Credit Unions wrote to the Senate Banking Committee ahead of its hearing on housing affordability.
“Credit unions have long had a history of rent-to-own programs; first time homeowner programs; financial literacy and wealth building programs to assist millions of Americans on their path to financial well-being,” CU President/CEO Jim Nussle stated in the letter. “Data consistently shows that credit unions are at par or exceed our for-profit counterparts in the financial services marketplace.
“That said, credit unions understand that a significant gap remains in access to housing for moderate- to low-income and minority members. Credit unions are working to close this gap,” it added.
What Analysis Found
America’s Credit Unions said its analysis of 2022 Home Mortgage Disclosure data shows credit unions originated a higher share of purchase loans to Black and Hispanic borrowers than banks did (17.6% versus 15.5%), ACU said.
Analysis of lending data for the first quarter of 2023 show the median interest rate for 30-year mortgages among prime borrowers at credit unions is notably lower than that at banks and mortgage companies, and this trend holds true for urban, rural, and non-prime borrowers, ACU said.
Additional Points Raised
Nussle also offered support for the bipartisan Homebuyers Privacy Protection Act (S. 3502/H.R.7297) that would curb the “abusive” use of mortgage credit “triggers leads” in all but a limited set of circumstances.
He also noted support for modernizing field of membership restrictions, which would make a major impact on credit unions’ ability to serve minority and disadvantaged populations.
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