CUs Sold 60% of their 2011 Originations to Fannie, Freddie

Credit unions have grown increasing dependent on Fannie Mae and Freddie Mac over the past five years as a source of liquidity and access to the secondary market, according to the National Association of Federal Credit Unions.

A survey by NAFCU discovered that nearly 50% of the respondents said the elimination of the GSEs would have significant impact on their ability to provide mortgage loans to their members.

Credit unions originated over $120 billion in single-family loans in 2012, up from $60 billion in 2007.

During that same period, the portion of first mortgages sold by CUs into the secondary market increased from 26% to 54%.

Home Mortgage Disclosure Act data shows that CUs sold 60% of their mortgage production to Fannie and Freddie in 2011.

“In any housing reform effort, credit unions need continued unfettered access to a secondary market that recognizes the quality of their loans through fair pricing,” NAFCU said in response to a housing finance reform bill approved by the House Financial Services Committee on July 24.