ARLINGTON, Va.–NAFCU is reporting its member CUs remain interested in whether new stimulus and other relief may be passed by Congress, while at the same time the trade group is looking forward toward how several scenarios might play out under a new administration.
With discussions in Congress over a new stimulus package seemingly in limbo, NAFCU EVP/General Counsel Carrie Hunt said the group continues to hear from its members over where those talks might stand, “particularly as the pandemic continues. It is something that remains a priority for us.”
As a Biden Administration prepares to take power in January from the outgoing Trump Administration, Hunt said one of the most important issues it is watching is what will become of reform efforts related to the two government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, which continue to operate under government conservatorship.
Hunt noted earlier reform efforts aimed at helping both GSEs to exit conservatorship stalled on the legislative side, even as FHFA Director Mark Calabria has pushed a plan to privatize the two mortgage giants.
“We continue to support the push to get the GSEs out from under conservatorship provided rails are put in place by Congress,” said Hunt. “How that will all be addressed is important.”
A Complicating Factor
The complicating factor, pointed out Hunt, is both Fannie and Freddie are also now holding a significant volume of loans that have gone into forbearance as a result of legislation passed by Congress in response to the pandemic, which has only added to the “pressure” when it comes to finding a path forward.
When asked where NAFCU and credit unions would be concerned over losing any progress made over the last four years as a new administration takes over, Hunt said the trade group would certainly be looking to the tone set by a new director of the CFPB, especially as it relates to the agency’s approach to third party debt collection