NAFCU Seeks Stability in GSE Reform
However Congress reforms the government-sponsored enterprises for the secondary mortgage market, NAFCU wants lawmakers to ensure stability in those markets through that reform.
"We realize that Fannie Mae and Freddie Mac will likely transition out of their current conservatorship into a new model. As Congress considers ways of reforming the current GSE system, we believe it is important that safeguards are in place to make for a smooth transition, and that the important roles that Fannie Mae and Freddie Mac play for credit unions and the secondary market not be compromised," NAFCU wrote in a Feb. 4 letter to the chairmen and ranking members of the Senate Banking, Housing and Urban Affairs Committee and the House Financial Services Committee. "As credit unions can only raise capital from their membership, having additional sources of liquidity is of key concern to our members. We look forward to working with your respective committees on this issue," the association added.
"Government Sponsored Enterprises like Fannie Mae and Freddie Mac allow credit unions to obtain the necessary liquidity to create new mortgages for their member-owners by utilizing the secondary market," NAFCU also wrote. "Despite their conservatorship, Fannie Mae and Freddie Mac have remained an important tool for credit unions to help them free up funds to make more loans. GSEs have served as a valuable resource and partner in credit union efforts to promote homeownership to their members, particularly low- and moderate-income members, in the current economic environment."