NAFCU Statement on House Financial Services Chairman Jeb Hensarling’s Draft Housing Finance Reform Proposal

WASHINGTON, DC (July 12, 2013) — National Association of Federal Credit Unions (NAFCU) President and CEO Fred R. Becker today issued the following statement in response to Chairman Hensarling’s draft housing finance reform proposal, the “Protecting American Taxpayers and Homeowners (PATH) Act.”

“We appreciate Chairman Hensarling’s leadership in releasing comprehensive draft legislation that addresses both the future of the Government Sponsored Enterprises and the Federal Housing Administration. The unveiling of this legislation is an important part of the housing finance reform debate. Still, we have serious concerns about the lack of a government role in the future of housing finance in this bill and the impact that omission could have on reliable access for credit unions to the secondary market. Moving forward, NAFCU will continue to work with Chairman Hensarling, members of the committee and their respective staffs, along with other interested parties, in addressing outstanding credit union concerns and ensuring that credit unions are recognized as responsible lenders in the financial services arena. In any future housing finance system, it is critical that credit unions continue to have unfettered access to the secondary mortgage market and attain fair pricing based on the high quality of their loans.”

“NAFCU is also encouraged, however, that the discussion draft includes provisions sought by credit unions to address shortcomings of mortgage-related rules issued by the Consumer Financial Protection Bureau. These provisions, including key changes to the definition of ‘points and fees’ under the ‘ability-to-repay’ rule, set to take effect in January next year, will address unfair and unnecessarily restrictive aspects of the CFPB’s rules and help ensure that credit unions can continue to serve the mortgage needs of their 96 million member-owners rather than focus on misguided regulations that will cause unprecedented compliance and legal burdens. NAFCU is also pleased that the bill includes reforms to the examination process for credit unions that will bring more fairness and transparency. NAFCU lauds Chairman Hensarling for including these important provisions in his package and looks forward to providing additional feedback on these much needed reforms as the committee continues to look for common-sense ways to cut down on the ever-increasing regulatory burden credit unions face.”

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