WASHINGTON--Following a recent a social media post from Federal Home Finance Agency (FHFA) Director Bill Pulte saying the FHFA wants to ensure credit unions “are not creating risks that we do not see,” America’s Credit Unions President/CEO Jim Nussle reached out to Pulte to emphasize credit unions as a safe and sound solution.
In a letter to Pulte, Nussle notes:
- Credit unions face a “strong and layered” regulatory framework for mortgages lending, with the NCUA, state regulators, and the CFPB for certain credit unions examining credit unions for compliance and safety and soundness
- Credit unions selling mortgages to Fannie Mae and Freddie Mac meet rigorous seller and servicer eligibility requirements, maintain quality control programs, live under representations and warranties, and face repurchase remedies if a loan does not meet standards
- Credit unions do not participate in the risky activities of other entities in the market, including complex capital market activities, relying more heavily on short-term wholesale funding, and expansion into nontraditional mortgage products and investor property concentrations
He also offered to assist the FHFA in any data gathering to answer specific questions about credit union participation in the Federal Home Loan Bank system, all toward a shared goal of “a housing finance system that is safe, fair, and durable.”
DCUC Response
In early September, the Defense Credit Union Council sent a letter to Pulte highlighting the importance of ensuring mortgage processes maintain integrity while recognizing credit unions’ role in supporting borrowers. DCUC's letter emphasizes credit unions’ commitment to delivering the highest level of service and fraud prevention.