ARLINGTON, Va.—NAFCU has sent a letter to the Federal Housing Finance Agency regarding its proposed single security structure.
In the letter, NAFCU’s senior regulatory affairs counsel, Angela Meyster, said NAFCU generally supports “the FHFA’s proposal to improve the overall liquidity of the GSEs by creating a single security eligible to be traded in the to-be-announced (TBA) market.”
NAFCU said the proposal has the potential to reduce the training and compliance burdens for credit unions that transact business with the GSEs and to allow greater accessibility to the TBA market. It further called on the FHFA to “pursue a transparent and level playing field and to avoid unnecessary exclusions or special options that would give a comparative advantage only to certain types of market participants in transactions involving the single security and in the TBA market in general,” and added that it also “ urges the FHFA to ensure that any existing GSE securities held by credit unions do not lose their marketability after the introduction of any single security.”