Credit unions continue to be keenly opposed to a move toward full secondary market privatization, according to survey results released by the National Association of Federally-Insured Credit Unions.
The survey revealed that 73.3% of respondents are against proposals that would eliminate the government-sponsored enterprises in favor of full privatization of housing finance without a government guarantee. Meanwhile, 74.1% support keeping the GSEs or something similar with an explicit government guarantee.
NAFCU found that a majority of credit unions continue to value the secondary market. Almost 60% of respondents sell mortgage loans to Fannie Mae, Freddie Mac, or both. Specifically, the survey revealed that 35% of respondents sold loans to Fannie Mae and almost 12% sold mortgages to Freddie Mac. About 12% of respondents sold mortgages to both GSEs.
On average, respondent credit unions sold 37.1% of their mortgage loans to Fannie and Freddie in 2017.
In its proposal to Congress, the FHFA said that the mortgage market should be supported by “secondary market entities” which will have regulated rates of return. The agency also said the government should provide an explicit, paid-for guarantee for mortgage-backed securities issued by guarantors.
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