The National Association of Federal Credit Unions stressed the importance of maintaining a viable secondary market for mortgages in a letter to the Treasury, responding to the latter's recent signals that it is preparing to take up the issue of government-sponsored enterprise reform again.
NAFCU president and CEO Fred Becker emphasized the group's three core principles for housing reform in a recent letter to Treasury secretary Tim Geithner as he pressed for the funding source to be maintained in order to meet members' need for affordable home loans.
The three core principles include a call to preserve Fannie Mae and Freddie Mac's “essential” functions at least until the federal government recovers the funds it has invested in the two entities.
Also the group calls for the group to guarantee on agency mortgage-backed securities' principal and interest “at least for the foreseeable future.”
In addition, Becker's letter included a call to maintain a level playing field for larger and smaller players, ensuring that the former does not gain at the latter's expense in setting policy in this area.
Geithner said last week that the administration plans to release more details about GSE reform this spring and that it will include a winding down of Fannie and Freddie. He also indicated that there will be more done in terms of exploring legislative options with representatives of the House and Senate.
