Credit unions will have a voice before a Senate committee on housing reform next week. CUNA SVP and Chief Economist Bill Hampel will testify before the Senate Banking Committee's "Housing Finance Reform: Protecting Small Lender Access to the Secondary Mortgage Market."
In July, Hampel was the CUNA witness at the Senate's first hearing on housing finance reform. He told members of the Senate Banking subcommittee on securities, insurance and investment that credit unions appreciate the need to reform the current housing finance system, but any reforms must not hinder the ability of credit unions to meet their members' housing finance needs in a member-friendly cooperative way.
Also, at a meeting with Federal Housing Finance Agency officials this month, CUNA staff suggested these actions to help preserve credit union access to the secondary markets:
The pricing policies of government-sponsored enterprises (GSEs) and their replacements should factor in credit unions' low delinquency and default rates
The GSEs and their replacements should purchase one loan as readily as pools of loans
The GSEs and their replacements should not require small issuers to use large aggregators to service their loans
The GSEs and their replacements should purchase non-qualified mortgage loans
Hampel will be one of a number of people testifying before the Senate.