CUNA has informed the U.S. Treasury Department that credit unions believe the federal government has a "very important but targeted" role in the secondary mortgage market going forward.
The trade association revealed its position on the role of the federal government in a reformed secondary mortgage market in a detailed Jan. 10 letter to Treasury Secretary Timothy Geithner.
CUNA expressed concern about some of the suggestions that have been aired for the types of organization that might replace the now government controlled Fannie Mae and Freddie Mac and, perhaps unsurprisingly, endorsed cooperatives as a possible organizational model for Fannie Mae and Freddie Mac's replacements. But the organization also made clear that whether the heirs to Fannie Mae or Freddie Mac are cooperative or not, CUs want access to them.
"Whether a secondary mortgage market entity is a cooperative or other cooperative form, the governance structure of the new entities providing secondary market services should ensure that all types of lenders, including credit unions, are well represented on their boards of directors," CUNA wrote. "This could also include, for example, advisory groups comprised of credit unions and others would provide information and advice to the new entities."
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