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NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the House Financial Services Committee (HFSC) ahead of its Federal Housing Finance Agency (FHFA) oversight hearing to reiterate the association’s priorities for the agency and housing finance.

Thaler offered support for the agency’s efforts to change the capital requirements for Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs). Additionally, he remarked how NAFCU has continued to advocate for lower guarantee fees for credit unions selling loans to GSEs.

“Excessive capital requirements that treat the GSEs like large banks by establishing enhanced regulatory and supervisory requirements will likely increase compliance costs for the GSEs,” added Thaler. “This has the potential to lead to negative impacts on credit unions and their members in the form of higher mortgage costs.”

Thaler requested the committee “to urge the FHFA to continue to transparently communicate its expectations regarding changes to guarantee fees or other fees on sellers during this difficult economic time and on a consistent basis as the GSEs move closer to a potential release from conservatorship.”

In addition, he expressed NAFCU’s concerns regarding fintechs in mortgage origination. Thaler noted NAFCU’s support for innovation but added that fintech innovation in housing finance has limits, including limited face-to-face interaction and subpar customer service. He added how the association has urged the agency to “mitigate the risks posed by non-depository fintech lenders in order to protect the safety and soundness of the housing finance system” and asked the committee to evaluate how the FHFA should mitigate risks posed by fintechs.

Thaler’s letter also touched on affordable housing, noting that the GSEs have more opportunities to close gaps in homeownership. He shared NAFCU’s request for the “FHFA to consider pilot programs for low- or zero-down payment mortgage loans that help borrowers build wealth.”

Of note, NAFCU recently wrote to the FHFA for its request for information regarding its single-family social bond policy and its proposed rule to change the GSEs capital requirements.

The association remains engaged with the FHFA and lawmakers to ensure credit unions can provide exemplary mortgage lending services to consumers.