The National Association of Federal Credit Unions will testify this week during the House Financial Services Committee’s markup of the Protecting American Taxpayers and Homeowners Act.
The full HFSC committee met on Tuesday to discuss the legislation introduced by Reps. Jeb Hensarling (R-Texas) and Scott Garrett (R-N.J.). The bill would liquidate Fannie Mae and Freddie Mac over a five-year period and replace them with a new, non-profit National Mortgage Market Utility, which would not receive any federal guarantees and would be barred from issuing securities.
NAFCU testified last week on the draft proposal of the legislation, saying that credit unions must be able to retain full access to the secondary mortgage market under any housing finance system reforms.
The group also said, however, that Fannie Mae and Freddie Mac should continue to function—either in or out of conservatorship—to honor the agency guarantees for as long as necessary for both to repay government debts.