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The Government Accountability Office (GAO) has released a report calling on Congress to consider housing finance reform legislation. NAFCU's core principles for housing finance reform are cited in the report.

The report, "Prolonged Conservatorships of Fannie Mae and Freddie Mac Prompt Need for Reform," recommends that Congress consider legislation that addresses the structure of the government-sponsored enterprises (GSEs), establishes clear and prioritized goals and takes into account all relevant federal agencies.

It specifically cites NAFCU's principles for housing finance reform as it relates to allowing the GSEs to rebuild capital, saying that associations representing small lenders support "reconstituting the enterprises to ensure the continuation of the cash window."

In November, NAFCU provided comments to the Federal Housing Finance Agency (FHFA) on its proposed capital rule for the GSEs. The association generally supports the proposal, but recommended the FHFA allow the GSEs to submit capital restoration plans as allowed under the Housing and Economic Recovery Act (HERA) – a provision that makes clear Congress envisioned a path to remove the GSEs from conservatorship. NAFCU also argued that restoration plans shouldn't be approved until Congress has agreed to codify certain safeguards. The GAO report notes the need for safeguards to reduce risk as the GSEs are recapitalized.

The association has urged the Trump administration and Congress to work together on a comprehensive solution to housing finance reform, and has argued that the continued conservatorship of the government-sponsored enterprises (GSEs) is unsustainable. In addition to providing feedback on the capital proposal, NAFCU has also offered support for the GSEs to create and use a uniform mortgage-backed security (UMBS).

In a letter to FHFA Interim Director Joseph Otting on 2019 priorities, NAFCU President and CEO Dan Berger reiterated the need to ensure credit unions' unhampered access to the secondary mortgage market in any reform actions, and also asked for clarification on how the new proposed capital requirements rule could affect their ability to sell loans to the GSEs, among other things.

NAFCU has previously shared its core principles for housing financial reform that should be included in any final reform measures with lawmakers and numerous officials in the Trump administration.