Removing Barriers Blog

House Financial Services Subcommittee Discusses Housing Finance Reform
Posted October 26, 2017 by CUNA Advocacy

Yesterday, the House Financial Services Subcommittee held a hearing to discuss housing reform. As we’ve stated in the past, CUNA appreciates Congress taking the time to focus on the importance of housing finance reform and looks forward to working with them to ensure the credit union perspective is understood.

Credit unions need equitable access to a system that will accommodate member demand for long-term, fixed-rate mortgage products. In 2016, credit unions originated more than $140 billion in mortgages, 8% of the total market.

CUNA supports housing finance reform proposals that are consistent with the following principles:

  • There must be a neutral third party in the secondary market, with its sole role as a conduit to the secondary market;
     
  • The secondary market must be open to lenders of all sizes on an equitable basis;
     
  • The entities providing secondary market services must be subject to appropriate regulatory and supervisory oversight to ensure safety and soundness;
     
  • Credit unions should continue to be afforded the opportunity to provide mortgage servicing services to their members in a cost-effective and member service-oriented manner; and
     
  • The transition from the current system to any new housing finance system must be reasonable and orderly.

CUNA believes a new housing system must:

  • Ensure mortgage loans will continue to be made to qualified borrowers even in troubled economic times;
     
  • Include consumer access to products that provide for predictable, affordable mortgage payments to qualified borrowers;
     
  • Apply a reasonable conforming loan limit that adequately take into consideration local real estate costs in higher cost areas; and
     
  • Emphasize consumer education and counseling.