WASHINGTON—Congress has been told the country’s credit unions are prepared to work on initiatives to improve access to housing and reduce gaps in homeownership rates.
In a letter to the House Financial Services Committee in advance of a hearing this week on oversight of the Department of Housing and Urban Development (HUD), America’s Credit Unions wrote, “Credit unions support legislation and policy decisions that would increase the supply of safe, affordable, and reasonably resilient housing, including efforts to make it easier for homebuilders and homebuyers to use manufactured housing to reduce the housing shortage. The housing market is a critical aspect of our nation’s economy, and the future availability of affordable housing is of great importance to our nation’s credit unions and their 140 million members.”
What Analysis Shows
According to America’s Credit Unions, its analysis of Home Mortgage Disclosure Act (HMDA) data for 2022 shows:
- Credit unions originated a higher share of purchase loans to Black and Hispanic borrowers than banks did (17.6% versus 15.5%)
- Over 17% of credit union originations were in low- and moderate-income census tracts, which was also higher than banks (15.9%)
- The median interest rate for 30-year mortgages among prime borrowers at credit unions is notably lower than that at banks and mortgage companies, a trend that holds true for urban and rural and non-prime borrowers
Veto Will Not be Overridden
Separately, the Senate failed to garner the two-thirds majority needed to override President Joe Biden’s veto of the CFPB’s section 1071 rule.
Biden vetoed the congressional resolution of disapproval in December, after the legislation passed through both chambers.
The section 1071 rule, which would require credit unions and banks to collect demographic data on small businesses that apply for loans, is currently under a nationwide stay for all covered entities, Americas Credit Unions noted.
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