The Defense Credit Union Council (DCUC) has formally responded to recent public remarks by Federal Housing Finance Agency (FHFA) Director Bill Pulte questioning credit unions’ role in mortgage lending and fraud prevention.
In a letter sent to Director Pulte, DCUC President/CEO Anthony Hernandez outlined credit unions’ strong record in housing finance, their leadership in protecting consumers from fraud, and their ongoing commitment to collaboration with regulators.
“Credit unions are a cornerstone of our housing finance system, demonstrating excellence in mortgage lending and unwavering dedication to protecting their members,” Hernandez says. “Through responsible lending, innovative fraud prevention, and community-focused service, credit unions continue to make a meaningful difference in the lives of their members every day.”
Credit Unions’ Proven Track Record in Mortgage Lending
Credit unions serve more than 144 million members nationwide, including millions of military families. During the 2007–2009 financial crisis, only 2% of credit union mortgages were delinquent versus 7.3% at banks. Just 48 credit unions required $69 million in public assistance compared to 710 banks receiving $236 billion in bailouts.
Today, delinquency rates remain exceptionally low. In mid-2023, only 0.33% of credit union mortgage borrowers were 60+ days past due, compared to a national average of 3.88%.
Credit Unions’ Fraud Prevention Leadership
In the letter, DCUC noted how credit unions are early adopters of advanced fraud prevention tools, such as AI-driven detection systems. DCUC shared that Launch Credit Union’s recent deployment of an AI platform stopped $3.5 million in fraud attempts, while PenFed Credit Union leverages machine-learning solutions to detect anomalies in loan applications.
Additionally, credit unions supplement technology with proactive member education, fraud awareness seminars, and close coordination with military bases, veteran service organizations, regulators, and law enforcement.
Commitment to Military Communities
DCUC also pointed to credit unions’ unique role in serving military members, veterans, and their families. From PCS relief loans to financial counseling, credit unions consistently go above and beyond compliance with the Military Lending Act and Servicemembers Civil Relief Act.
“Serving those who serve our country is at the heart of the credit union mission,” Hernandez says. “Credit unions’ member-first service model is why we continue to earn higher trust and satisfaction ratings than for-profit banks. We stand ready to work with FHFA to expand affordable housing access and strengthen fraud prevention efforts.”
DCUC requested a meeting with Director Pulte to discuss these issues further and reaffirmed its readiness to collaborate with FHFA and NCUA on shared goals for a safe, fair, and accessible housing finance system.