The National Association of Federal Credit Unions told Senate leaders this week that continued U.S. support of mortgage-backed securities through Fannie Mae and Freddie Mac is critical for these non-profit lenders.
NAFCU told the chairman and the ranking Republican of the Senate Banking Committee that government backing of MBS is among several, “key principles that will ensure community based financial service providers are treated fairly during any housing finance reform process.”
The NAFCU urgings came in a letter to the banking panel, which on Tuesday held a hearing on housing finance reform and the worthiness of a government guarantee on MBS.
“Housing finance reform involves consideration of many highly complex issues, including the role of the federal government, which shouldn't be changed quickly or without careful consideration,” wrote Brad Thaler, senior lobbyist for NAFCU. “Fannie Mae and Freddie Mac own or guarantee a significant number of mortgages in the United States, and any piecemeal Congressional action could have serious unintended consequences for current and perspective homeowners. As you know, such a disruption could trigger a “double-dip” recession wreaking havoc on our country's economy and the broader global finance system.”
