CUNA Brings Short and Long Term CU Priorities to FHFA Acting Director | 2021-06-30
Several issues with the Federal Housing Finance Agency (FHFA) require immediate attention, new FHFA director Sandra Thompson wrote on Wednesday. Thompson was appointed interim director last week by President Joe Biden after the United States Supreme Court ruled that the director could be removed at will by the president.
CUNA also reiterated its Principles for Housing Finance Reform, which outline the considerations necessary for credit unions in reforming our housing finance system. CUNA continues to support the goal of eventual exit from Fannie Mae and Freddie Mac’s guardianship in a responsible manner without sacrificing equitable secondary market access and pricing for lenders of all sizes and charter types.
Short-term priorities include calling on the FHFA to:
- Cancel the adverse market charge of 0.5% for certain refinanced mortgages purchased by Fannie Mae and Freddie Mac to reduce the cost of refinancing for consumers.
- Review its policies regarding the purchase of qualified mortgage loans eligible under the current regulatory framework of the Consumer Financial Protection Bureau (CFPB).
- Restructure the GSE approach for the implementation of the 7% ceiling on investment loans and second homes
- Review the fourth set of amendments to the Amended and Updated Preferred Share Purchase Agreement with Treasury at the earliest opportunity.
In the longer term, the CUNA calls on the FHFA to:
- Collaborate with credit unions to continue its mission of supporting sustainable and affordable home ownership.
- Carefully review the education and training requirements for assessors to ensure they not only understand the existing obligations under the Fair Housing Act, but also receive training on implicit and unconscious bias. .
- Take steps to enable Federal Home Loan Banks (FHLBanks) to fulfill their mission, including:
- Ensure that individual FHLBanks retain the ability to exercise their own discretion, given that they have a better understanding of their communities and their risks.
- Enable them to provide ancillary services which should not require insured depositories to maintain their membership.
- Protect their ability to operate in a financially secure and sound manner to serve primarily as a source of liquidity for the housing finance system.