Federal Housing Finance Agency Director Mel Watt told members of the Senate Banking Committee Thursday that Congress needs to make legislative reforms to government-sponsored enterprises Fannie Mae and Freddie Mac, saying their “conservatorships are not sustainable.”

In his opening statement, Watt said “these conservatorships are not sustainable and they need to end as soon as Congress can chart the way forward on housing finance reform.”

NAFCU’s priority in any reforms of the housing finance system remains to ensure credit unions’ access to the secondary mortgage market. The association has also urged that Congress put into place safeguards that will prevent discrimination based on institution type or asset size.

Of note, Sen. Cortez Masto, D-Nev., asked Watt about the potential for community lenders being effectively boxed out in housing finance system reform. Watt said his intention is to treat large and small lenders the same.

 

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