WASHINGTON—Dr. Mark Calabria stressed the need for housing finance reform during his swearing in ceremony to lead the Federal Housing Finance Agency (FHFA).
Calabria was recently sworn in as director of the agency by Vice President Mike Pence, for whom Calabria previously served as chief economist.
In his speech, Calabria indicated the agency would work with the Trump administration on issues outlined in the recent presidential memorandum. He said it is important to "cement those gains" made since the 2008 financial crisis and continue to build a strong foundation for the FHFA's oversight.
Calabria, whose nomination hearing before the Senate also included the two new NCUA board members, also noted the risks of the housing cycle and that "we must prepare for the inevitable downturn" and acknowledge the impact bad mortgage financing policies have on American families.
"The mortgage market was at the center of the last crisis, as it has been for many past financial crises, both in America and globally," Calabria said. "I believe the foundations of our current mortgage finance system remain vulnerable. After years of strong house price growth, too many remain locked out of housing, while others are dangerously leveraged. We must not let this opportunity for reform pass."
NAFCU Meets With Calabria
NAFCU noted it has met with Calabria several times to share the association's housing finance reform priorities, saying Calabria supports NAFCU's position on allowing the GSEs to rebuild capital. The association also met on these issues with Comptroller of the Currency Joseph Otting as he served as FHFA acting director.
As CUToday.info reported, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt recently testified before the Senate Banking Committee on credit unions' priorities for housing finance reform, many of which align with Calabria's and the Trump administration's positions on the issue.