WASHINGTON—Senate Banking Committee Chairman Mike Crapo (R-ID) has released an outline of his proposal to overhaul the nation's housing finance system.
"My priorities are to establish stronger levels of taxpayer protection, preserve the 30-year fixed rate mortgage, increase competition among mortgage guarantors and promote access to affordable housing," said Crapo.
In response, NAFCU President and CEO Dan Berger noted the association's appreciation for the senator's commitment to reform.
"We appreciate Chairman Mike Crapo's commitment to reforming our housing finance system, including the recognition of the need for fair pricing and access for financial institutions of all sizes. We look forward to working alongside Congress and the Administration to ensure that credit union interests are protected in any housing finance reform proposal that is ultimately enacted," said Berger.
Message from White House
Last week, the White House said it will work with Congress to reform the housing finance system and government-sponsored enterprises (GSEs). NAFCU noted that it has urged the Trump administration and Congress to work together on a comprehensive solution to housing finance reform and has argued that the continued conservatorship of the GSEs is unsustainable.
CUNA had also issued a statement pointing to the role played by America’s credit unions in the housing finance marketplace, noting CUs depend on the secondary market to provide liquidity for mortgage credit.
“We applaud Chairman Crapo for his initiative in proposing a legislative solution to one of the most important, unresolved issues remaining from the financial crisis—reforming the secondary mortgage market,” said CUNA Chief Advocacy Officer Ryan Donovan in a statement. “Credit unions look forward to engaging with both the Chairman and the Senate Banking Committee as this outline continues to develop into legislation and CUNA is committed to working to ensure that the secondary market of the future includes equal and fair access to credit unions.”
CUNA noted that it has consistently supported the creation of an efficient, effective and fair secondary market with equal access for lenders of all sizes.