NASCUS urges regulatory coordination and advocates for small lender access to the secondary market in statement for the hearing on housing finance reform
NASCUS took the opportunity to submit a Statement for the Record for the Senate Committee on Banking, Housing, and Urban Affairs’ November 5th Hearing on Housing Finance Reform: Protecting Small Lender Access to the Secondary Mortgage Market.
NASCUS’ comments focus on the prudential benefits of secondary market access for credit unions, and the importance of streamlined coordination and information sharing between any new federal regulatory agency and the primary prudential state or federal regulator for the issuing or servicing financial institution.
NASCUS’ recommendations for Housing Finance Reform emphasize the need for reforms that include a legislative mandate to maintain small lender access to the system. Without such mandate, small lenders such as many credit unions will effectively be shut out of the secondary market, undermining their ability to provide loans and services in already underserved areas. NASCUS urged the Committee to also include in any reform the preservation of small institutions’ ability to sell single loans directly into the secondary market. Finally, NASCUS asked the Committee to maintain existing standardization and digital underwriting programs, and to embrace a pricing structure that values loan quality over lending volume.
“NASCUS applauds the Committee’s efforts in addressing this difficult issue and providing much needed reform to the housing finance market,” said NASCUS President and CEO Mary Martha Fortney. “NASCUS continually works to ensure streamlined coordination and information sharing between any new federal regulatory agency and the primary prudential state or federal regulator in order to ensure seamless oversight while minimizing regulatory burden.”
To see the testimony click here.