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NAFCU calls for increased regulator transparency, cautions against increased GSE fees
The House Financial Services Committee holds a markup today that includes two bills NAFCU is engaged on related to financial regulator transparency and the government-sponsored enterprises’ (GSEs) guarantee fees. NAFCU Vice President of Legislative Affairs Brad Thaler wrote to the committee outlining the association’s perspective on the bills.
The Increasing Financial Regulatory Accountability and Transparency Act (H.R. 3556) would require the NCUA Board chair – and other prudential regulators – to testify semi-annually before the House Financial Services Committee and the Senate Banking Committee, as well as expand the reporting requirements related to supervision and regulation of credit unions, including providing confidential reports. NAFCU is supportive of efforts to increase transparency at the NCUA.
The Middle Class Borrower Protection Act of 2023 (H.R. 3564) would cancel the Federal Housing Finance Agency’s (FHFA) recent changes to the GSEs’ single-family pricing framework (read more about the agency’s request for information on the framework and FHFA Director Sandra Thompson’s testimony before the committee yesterday).
Thaler reiterated NAFCU’s support for efforts to allow the GSEs to rebuild capital, noting that “strong liquidity and funding requirements are an important step toward preventing another government bailout in the event of an economic downturn and ultimately removing the GSEs from conservatorship.”
However, NAFCU is concerned that it will result in higher guarantee fees (g-fees) – harming consumers and credit unions that sell loans to Fannie Mae and Freddie Mac: “increased g-fees on the sale of loans should not be the trade-off for the short-term capital build-up and other changes at the GSEs, as this will serve to limit access to credit for the communities that are most in need,” Thaler wrote.
NAFCU will monitor today’s markup and keep credit unions informed of the discussions and actions.