Equal credit union access essential to housing finance market
Credit unions are meeting the housing finance needs of their members and communities, but there are policy changes that could help expand participation. As the Federal Housing Finance Agency (FHFA) seeks input on its proposed strategic plan for fiscal years 2026-2030, America’s Credit Unions outlined several ways FHFA can aid them in this mission in comments filed Wednesday.
America’s Credit Unions recommends FHFA:
- Maintain small lender “cash window” parity, in which any post-conservatorship Fannie Mae or Freddie Mac offers the same execution, timing, and guarantee fee schedule to credit unions as it does to the largest aggregators and banks.
- Create a statutory or regulatory guarantee fee so that the cost of recapitalization is not borne disproportionately by credit union members.
- Preserve the Uniform Mortgage-Backed Security in order to keep a single, fungible security with consistent disclosure standards;
- Adopt a more tailored approach when evaluating and revising regulations that affect credit unions and coordinate with NCUA and other agencies to avoid burdensome requirements;
- Support amendments redefining community financial institutions (CFIs) to include credit unions to simplify membership and participation in the Federal Home Loan Bank system. According to NCUA data, 1,720 credit unions would qualify for membership with this change; and
- Engage credit union stakeholders in the development of technology to ensure modernization efforts reflect operational realities, including additional guidance and resources to help credit unions adopt these emerging technologies.
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