WASHINGTON – Speakers at Tuesday's NAFCU Congressional Caucus provided an intimate exchange withattendees, speaking off the cuff, answering questions from theaudience and even leaving the podium to speak from the MayflowerHotel ballroom floor.

The agenda featured members of the House Financial ServicesCommittee, including the committee's chairman, Rep. Jeb Hensarling,(R-Texas), along with Rep. Robert Hurt (R-Va.) and Rep. MichaelGrimm (R-N.Y.).

Hensarling spent the bulk of his speaking time promoting thePATH Act, a bill introduced by House GOP leaders that wouldwind down Fannie Mae and Freddie Mac and replace them with a mostlyprivatized secondary mortgage market. He pressed that housingfinance reform is critical to breaking the cycle of boom, bust andbailout.

Interestingly, Hensarling cautioned his audience about askingmembers of Congress for regulatory relief and to also sustain apermanent government subsidy, which he said would be a challengefor many.

Oversight of the Consumer Financial Protection Bureau was also atopic Hensarling covered, timely as CFPB Director Richard Cordraywill present the bureau's semi-annual report to the House Thursdaybefore Hensarling's committee. In April, the chairman refused to allow Cordray to testify before the committeepending his confirmation.

While Hensarling acknowledged that Cordray has a goodreputation, he also said he has too much power, and the GOP leadersaid his committee will continue to conduct hearings that increasethe bureau's accountability.

Hurt delivered a speech that covered Dodd-Frank regulatoryburdens and GSE reform, and took questions from the audience,including one from Ed Templeton, NAFCU board member and president/CEO of the $670million SRP Federal Credit Union of North Augusta, S.C.

In response to Templeton's question about what will happen tothe pricing of mortgages if the government guarantee is eliminated,Hurt acknowledged that some experts have said lenders will chargeborrowers additional points to cover risk. However, he added thatothers have declared the move a wash, saying efficiency andunderwriting would improve.

“You cannot underestimate the innovation—we see it everyday—that takes place in a free market,” he said.

Hurt also told Templeton the PATH Act explicitly protectssecondary market access to lenders of all size.

Sen. Tim Scott (R-S.C.) entertained the crowd with impromptuhumor and a personal story about a life lesson he learned over theLabor Day weekend from his 93-year-old grandfather. Scott, whoserved on a credit union board for seven years, said he wouldprotect the credit union tax exemption and vote in support ofraising the member business lending cap.

In response to an audience question asking the best way forcredit union executives to influence legislators, Scott said heprefers face-to-face visits.

“If you take the time to hand write a letter, I want to see it,”he said.

He also cautioned that Congress could put off passinglegislation until the end of the year, and combine several issuesinto one large bill, using the Holidays as pressure to push itthrough.

NCUA Board Member Michael Fryzel in his speech challenged credit unions toincrease membership in the U.S. to 200 million, more than doublethe current number. He cautioned that theeffort would vision, investment and inconvenience.

“It will take more than walking the halls of Congress,” Fryzelsaid. “It will require pressing lawmakers to work with us andgetting the legislation we need written and passed. It will takework in the communities you serve with your own board andemployees. The financial crisis has mainly passed. The healing hasbegun. But important work remains.”

Specifically, Fryzel voiced his support of raising the memberbusiness lending cap and allowing credit unions to raisesupplemental capital.