The National Association of Federally-Insured Credit Unions (NAFCU) has issued three recommendations to the Federal Housing Finance Agency (FHFA) regarding its draft strategic plan for fiscal years 2022-2026.
NAFCU Regulatory Affairs Counsel Aminah Moore recently forwarded correspondence to the FHFA, praising the agency for its commitment to promoting sustainable and equitable access to mortgage credit while protecting the safety and soundness of the government-sponsored enterprises (GSEs) – Fannie Mae and Freddie Mac and the Federal Home Loan Bank (FHLB) system.
With regard to the FHFA attaining goals within the draft strategic plan, Moore recommended the agency deploy technology to aid appraisal modernization, utilize creation and approval of pilot programs as a means of closing the homeownership gap, and continue collaboration with other regulators to address climate risk.
“NAFCU appreciates the FHFA’s commitment to fostering liquidity in the mortgage markets and ensuring equitable access to the secondary market by qualified institutions and borrowers,” Moore wrote. “However, there are more opportunities available to the GSEs that can further close the homeownership gap and ensure that government-sponsored programs are benefiting the individuals and communities that most need them. Community Development Financial Institutions (CDFIs) promote financial inclusion and focus on serving the needs of very-low, low- and moderate-income communities.”
Moore conveyed via the correspondence that the NAFCU is reiterating its Dec. 2, 2021, request for the FHFA to create a pilot program enabling GSEs to buy non-conforming loans from CDFIs because they serve the communities these programs are designed to help.