Equal access for credit unions in GSE reform
In a letter sent Wednesday, America’s Credit Unions Head of Regulatory Advocacy James Akin thanked the Treasury Department for including credit unions in its recent roundtable on government-sponsored enterprise (GSE) reform and urged them to ensure that any post-conservatorship framework for the GSEs preserve a genuine level playing field for lenders of all sizes.
Akin also called on the Treasury Department to keep mortgage costs stable and predictable and ensure the Federal Housing Finance Agency (FHFA) remains a strong, independent regulator.
The letter reiterated several of the credit union priorities Akin and America’s Credit Unions President/CEO Jim Nussle voiced at the roundtable, including:
- The need for parity in the small-lender “cash window” for credit unions;
- A statutory or regulatory guarantee-fee so that the cost of recapitalization is not borne disproportionately by credit union members;
- Preservation of the uniform mortgage-backed security; and
- Creation of a permanent Small-Lender Advisory Council, or a body with direct credit union representation.
These recommendations will allow credit unions to continue to combat financial gaps and banking deserts, as well as help close wealth gaps and stabilize communities.
America’s Credit Unions will continue to advocate on behalf of the industry on this topic, ensuring that any GSE reforms prioritize equitable access and avoid creating barriers for smaller institutions.
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