WASHINGTON—The next president of the Government National Mortgage Association (Ginnie Mae) must understand the unique mission, structure, and operation of America’s credit unions, CUNA is asserting.
President Joe Biden has nominated Alanna McCargo to serve as Ginnie Mae director last month.
CUNA noted it historically does not take a position in presidential nominations—and takes no position on McCargo’s nomination—but wrote to the Senate Banking, Housing, and Urban Affairs Committee to share several priorities in advance of McCargo's testimony.
“It is critical that the next President of GNMA be able and willing to work to fully understand the intricacies of credit unions, community development financial institutions, and other unique lenders that are primarily focused on servicing their communities,” the letter reads. “Strengthening GNMA’s relationship and approachability for these types of financial institutions will ultimately benefit both GNMA and American homebuyers.”
‘Factually Inaccurate’
CUNA noted that Ginnie Mae has treated credit unions as non-depository mortgage lenders, and as “non-banks” in its latest mortgage-backed securities guide.
“This is factually inaccurate given the superior quality of credit union mortgages, the diversification of credit union assets, credit unions’ access to liquidity, credit unions’ status as insured depository institutions, and the multiple layers of oversight for regulatory compliance and safety and soundness credit unions undergo,” the letter reads.