Allowing credit union solutions to housing affordability
Credit unions can address housing affordability and supply issues, and America’s Credit Unions shared ways Congress can facilitate these efforts in advance of the House Financial Services Committee’s hearing on reducing government roadblocks to increasing housing supply.
“Credit unions believe in supporting their members and their communities by creating products and services designed to suit member needs, including the underserved. Credit unions have long had a history of rent-to-own programs, first-time homeowner programs, and financial literacy and wealth-building programs to assist millions of Americans on their path to financial well-being,” the letter reads. “Data consistently shows that credit unions are on par with or exceed our for-profit counterparts in the financial services marketplace.”
Specific recommendations include:
- Include credit unions in the definition of “community financial institutions” for Federal Home Loan Bank membership, making more than 1,800 credit unions eligible for FHLBank membership with access to additional liquidity;
- Develop legislative solutions, such as expanding the ability for all credit unions to add underserved areas, to improve access to housing and reduce gaps in homeownership rates;
- Advance the Expanding Access to Lending Options Act (H.R. 4167), giving credit unions the flexibility to offer loan terms greater than 15 years with lower monthly payments to their members;
- Advance the bipartisan Supporting Upgraded Property Projects and Lending for Yards (SUPPLY) Act (H.R. 4568), creating flexible lending opportunities for accessory dwelling units and expand access to affordable housing; and
- Moving forward legislation to provide a clean, one-year extension of the National Flood Insurance Program.