WASHINGTON (6/7/13)--Those in Washington, D.C. who care strongly about housing reform have been abuzz in recent days as they pour over and write about discussion drafts of a bill that would make changes to the government-sponsored housing enterprises and the entities that regulate them.
"It is not insignificant," said Credit Union National Association Senior Vice President Ryan Donovan Thursday, "that Sens. Mark Warner (D-Va.) and Bob Corker (R-Tenn.) are putting pen to paper to create a bill to provide secondary mortgage market reform. We welcome the effort and its potential to be a catalyst for housing finance reform."
"There is a lot of interest in the various versions of the draft legislation, which I think speaks to the level of interest there is in the issue and the desire among stakeholders to see this issue addressed. But, there is no doubt that this process will be long--and it should be--because the consequences of getting it wrong are so great, especially with the economy in recovery."
CUNA is actively engaged in GSE and general housing policy reform discussions on Capitol Hill and is involved in a broad coalition of all depository institutions, title insurers and other stakeholders to monitor progress on the issue.
Donovan said that CUNA will be evaluating all housing finance reform proposals for consistency with the priorities the association has developed with the guidance of its Housing Finance Reform Task Force. CUNA has testified in the U.S. Congress on GSE reform and written to the Obama administration noting that the costs to the economy and housing market of failing to make necessary changes to housing policy great.
"Our key concern with any proposal enters the public debate is whether it encourages a well-regulated and well-capitalized secondary market that credit unions are able to access in a manner that allows them to continue to offer mortgages on the terms that credit union members demand. At the end of the day, that's how we will evaluate these proposals."