WASHINGTON--Recommendations to lower costs for mortgage borrowers without Congressional action are the focus of a joint letter from America’s Credit Unions and other financial services organizations.
The group sent these recommendations Wednesday to National Economic Council Director Kevin Hassett, ACU said.
According to ACU, helping address the Administration’s goal of increasing housing affordability, the targeted, achievable reforms would lower costs for borrowers, preserve safety and soundness for market participants:
- End the tri-merge credit reporting requirement and allow a single-file framework for government-sponsored enterprises Fannie Mae and Freddie Mac
- Responsibly reduce mortgage insurance premiums, carefully coordinated with program adjustments to address rising delinquency rates and risk-layering factors
- Reduce loan-level price adjustments (LLPAs) across the grid and eliminate LLPAs for rate/term refinances
The organizations also recommend policymakers examine opportunities for “broader regulatory modernization that would reduce costs structurally and sustainably,” in addition to near-term affordability goals.
Read the full letter here.