The Defense Credit Union Council (DCUC) has submitted a letter ahead of the House Financial Services Subcommittee on Housing and Insurance’s April 22 hearing titled, “Diversifying Risk: The Benefits of Reinsurance and Credit Risk Transfers.”
DCUC’s recent letter outlines its strong support for prudent risk-sharing mechanisms that enhance market stability and protect taxpayers, while ensuring these frameworks remain accessible and workable for community-based lenders, including credit unions.
“We’re requesting the Subcommittee evaluate how credit risk transfer structures and insurance market reforms impact liquidity, operational access, and mortgage affordability for all communities served by credit unions, especially servicemembers, veterans, and their families,” says Jason Stverak, DCUC Chief Advocacy Officer.
DCUC offered several policy recommendations for the Subcommittee’s consideration, including:
- Ensuring transparency and oversight of credit risk transfer impacts on small and mid-sized lenders
- Advancing long-term reauthorization of the Natonal Flood Insurance Program with private reinsurance and affordability safeguards
- Preserving and expanding credit union access to FHA, VA, Ginnie Mae, and Federal Home Loan Bank liquidity channels
- •Promoting interagency coordination to address housing and insurance challenges in military communities
Stverak wrote, “DCUC and our member credit unions remain committed to working with the Subcommittee to advance practical, bipartisan solutions that strengthen housing finance markets while preserving access to affordable credit for those who serve our nation.”