WASHINGTON (11/5/10)—The Credit Union National Association (CUNA) has begun developing its response to the potential reform of government-sponsored entities (GSE) Fannie Mae and Freddie Mac by forming its new GSE Reform Task Force. “With the divided Congress, it is unclear how far reform of the GSEs will get," CUNA President/CEO Bill Cheney said referring to the midterm election, which resulted in a Republican majority in the House and a Democratic majority in the Senate. "However, we recognize that having a secondary market available to credit unions that make and want to sell home mortgage loans is a critical issue and CUNA wants to be involved in that discussion.” Policymakers have asked CUNA to provide concrete recommendations regarding the future of the GSEs. The task force, which will be chaired by Idaho Credit Union League President Alan Cameron, should provide its preliminary views on GSE reform to the U.S. Treasury by the end of this month. The Obama administration should issue its own proposal in January. The group, which will report to CUNA's Governmental Affairs Committee, will be comprised of the following members:
* Roger Ballard - Kinecta Federal CU; * Brian Barkdull - American Southwest CU; * Jim Blake - HarborOne CU: * Joe Brancucci - GTE Federal CU; * Kirk Kodeleski - Bethpage FCU; * Paul Kundert - University of Wisconsin CU; * Nadar Moghaddam - Financial Partners CU; * Dennis Pierce - CommunityAmerica CU; * John Radebaugh - North Carolina CU League; * Mark Spenny - Citizens Equity First CU; and * Rod Staatz - State Employees CU of Maryland.
“This group of credit union leaders we have assembled, working with our staff, will ensure our responses are comprehensive and are designed to fully address the needs of credit unions and their members regarding home mortgage loans,” Cheney added. Jeff Bloch, CUNA senior assistant general counsel, said that the administration’s approach may range from a secondary mortgage market that is completely operated by the federal government to a private market system that would not include federal guarantees.