U.S. Capitol Building
As the Senate Banking Subcommittee on Housing, Transportation, and Community Development met for an Oct. 21 hearing on housing innovation, the credit union industry called for targeted reforms to expand affordable housing and strengthen support for military families.
In a letter submitted to the subcommittee, America’s Credit Unions urged lawmakers to recognize the critical role credit unions play in addressing housing affordability through community-based, cooperative finance. The trade group outlined policy solutions to empower credit unions to reach underserved communities, including modernizing field-of-membership rules, raising member business lending caps for housing projects and ensuring credit unions gain full access to Federal Home Loan Bank resources.
Meanwhile, the Defense Credit Union Council (DCUC) emphasized the unique housing challenges faced by servicemembers, veterans and their families, citing high rents near military bases, stagnant housing allowances and a shortage of affordable homes. DCUC President/CEO Anthony Hernandez warned that “when those who wore the uniform cannot find an affordable place to live, it not only harms their financial well-being but also undermines mission readiness, recruitment and retention.”
The DCUC also highlighted underutilization of the VA Home Loan program, noting that only 13% of eligible veterans use the benefit, often due to misconceptions and systemic hurdles. The council urged Congress to expand VA loan awareness, streamline appraisals and modernize the Basic Allowance for Housing (BAH) to better reflect market realities.
Both organizations underscored that credit unions, particularly those serving military communities, are innovating at the local level but need regulatory relief and legislative support to scale solutions. “Credit unions are proving every day that member-driven, community-based finance can make a real dent in the housing crisis,” DCUC’s Jason Stverak wrote.
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