Removing Barriers Blog

CUNA submits comments to the FHFA on their proposed 2021 housing goals

This afternoon, CUNA submitted comments to the Federal Housing Finance Agency in response to its proposed 2021 housing goals for the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac, and together with Fannie Mae, the GSEs).

Due to the economic uncertainty surrounding the COVID-19 pandemic, FHFA proposed keeping those goals unchanged from the thresholds adopted in 2018.  In the comment letter, CUNA points out that the housing goals are critical components of the GSEs charter missions to facilitate the financing of affordable housing for low- and moderate-income families and communities.

Given the importance of such lending to smaller lenders, such as credit unions working in rural and working-class communities, the letter expresses understanding and support for maintaining the current housing goals for 2021.  The letter also expresses hope that next year’s proposal may revisit increased goals, if warranted.

Finally, in response to a specific FHFA query, CUNA stated that Fannie and Freddie’s forbearance, modification or loss mitigation efforts are laudable, but should not substitute for a full plan for meeting housing goals if one or both of the GSEs should miss a target threshold in a particular year.