WASHINGTON—NAFCU has written to the Senate in support of the Improving FHA Support for Small-Dollar Mortgages Act of 2021, S. 2131, which would require the Federal Housing Administration (FHA) to conduct a review of any barriers to small-dollar mortgages and report to Congress on plans to remove those barriers.
"NAFCU believes this is an important step to ensure that affordable mortgage credit is available to low-and-moderate-income (LMI) households," wrote Vice President of Legislative Affairs Brad Thaler.
Thaler told the Senate credit unions have been an important source of credit to many consumers looking to purchase a home, and credit unions are willing to make small-dollar mortgage loans "as they are an important tool to help their members, including those who are LMI."
Thaler further suggested credit unions are far more likely to offer such loans than banks.
The full letter can be found here.