WASHINGTON—NAFCU President and CEO Dan Berger met with Federal Housing Finance Agency (FHFA) Director Mel Watt to discuss various efforts by the agency to strengthen the housing market, including the possibility of a pilot program to ensure affordable mortgage options and changes to credit score reporting that would provide credit unions with flexibility.
NAFCU and the FHFA also discussed the Federal Home Loan Bank's affordable housing program and the agency's recently released multi-year plan that aims to improve access to mortgage credit for limited English proficiency (LEP) borrowers, according to the trade group.
In order to provide more loan options for low-income families, NAFCU in September had recommended that the FHFA consider permitting the government-sponsored enterprises (GSEs) to start pilot programs for loans with a zero- or low-down payment and shorter amortization terms to help first-time homebuyers purchase and build equity on a home. However, the agency's final housing goals for the GSEs did not contain such plans. NAFCU said it intends to continue working with the FHFA to allow the GSEs to begin purchasing credit union loans that offer more affordable mortgage options to their members in need.
The FHFA is also currently considering changes to the credit scoring models used by the GSEs. Commenting in March on the four options the agency is considering, NAFCU recommended the "lender choice" option to provide credit unions with more flexibility, rather than continuing to use a one-size-fits-all approach.
Also Discussed
NAFCU reported that it also discussed in general terms its thoughts on the FHFA's perspectives on housing finance reform, released earlier this year. Many of NAFCU's core principles for housing finance reform, including a single government-guaranteed mortgage-backed security in any future housing finance system and the promotion of policies and practices by the GSEs that would provide "fair access to finance and financial services for all eligible financial institutions and qualified borrowers," have been included in Watt's objectives for housing finance reform and the FHFA's 2018-2022 strategic plan, NAFCU said.
NAFCU Director of Regulatory Affairs Alexander Monterrubio and Regulatory Affairs Counsel Ann Kossachev also attended the meeting with Berger at FHFA headquarters.