Trade groups drive GSE reform discussion ahead of hearing
WASHINGTON, DC (September 6, 2018) — Credit Union National Association (CUNA), alongside a diverse set of trade groups, is urging policymakers to fasten recent Government-Sponsored Enterprise (GSE) reforms to preserve access and affordability for consumers. A letter for the record was sent to the Administration and Congress ahead of a House Financial Services Committee hearing on the tax payer risks associated with GSEs.
“Together, we urge policymakers to lock in recent reforms to GSEs and complete the necessary additional reforms to protect taxpayers, provide liquidity and promote stability while taking care not to roll back aspects of GSEs’ operations that are supporting the foundation of the housing market,” the letter reads. “Only through such efforts can we ensure an affordable, accessible housing finance market that works for American homeowners and renters alike.”
Reforms put in place during conservatorship that have better positioned the GSEs to continue to play their role in facilitating mortgage liquidity. Those reforms include pricing parity across lenders, the transfer of risk away from taxpayers, a new infrastructure for single-family secondary market, and support for strong and sustained liquidity in the multifamily rental market are among such reforms.
To further sustain the housing market, reforms must be properly developed and implemented to establish a more permanent and reliable presence. As housing is critically important to the national economy and local communities, trade groups indicated the risk associated with disrupting the system by which it is financed.
CUNA supports housing finance reform that provides equitable access and pricing to secondary market liquidity for lenders of all sizes and charter types, and which fosters access to affordable and predictable mortgage products for homebuyers.
Credit Union National Association (CUNA) is the only national association that advocates on behalf of all of America’s credit unions, which are owned by 120 million consumer members. CUNA, along with its network of affiliated state credit union leagues, delivers unwavering advocacy, continuous professional growth and operational confidence to protect the best interests of all credit unions. For more information about CUNA, visit cuna.org. To find your nearest credit union, visit YourMoneyFurther.com.