WASHINGTON— Concerns that enhanced regulation of the government-sponsored enterprises (GSEs) could lead to higher mortgage costs for credit unions were raised in a letter sent by NAFCU ahead of a congressional hearing on the Federal Housing Finance Agency (FHFA).
NAFCU Vice President of Legislative Affairs Brad Thaler offered support for the agency’s efforts to change the capital requirements for Fannie Mae and Freddie Mac, but said the trade group also continues to advocate for lower guarantee fees for credit unions selling loans to GSEs.
“Excessive capital requirements that treat the GSEs like large banks by establishing enhanced regulatory and supervisory requirements will likely increase compliance costs for the GSEs,” wrote Thaler. “This has the potential to lead to negative impacts on credit unions and their members in the form of higher mortgage costs.”
Call for Transparent Communication
Thaler asked the committee “to urge the FHFA to continue to transparently communicate its expectations regarding changes to guarantee fees or other fees on sellers during this difficult economic time and on a consistent basis as the GSEs move closer to a potential release from conservatorship.”
In addition, he expressed NAFCU’s concerns regarding fintechs in mortgage origination, writing that NAFCU supports innovation but hat fintech innovation in housing finance has limits, including limited face-to-face interaction and subpar customer service.
Moreover, Thaler noted the association has urged the agency to “mitigate the risks posed by non-depository fintech lenders in order to protect the safety and soundness of the housing finance system” and asked the committee to evaluate how the FHFA should mitigate risks posed by fintechs.
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