NAFCU Hails FHFA Decision to Keep Debt-to-Income Ratio, Loan Limits for Fannie, Freddie
Washington (May 13, 2014) - The National Association of Federal Credit Unions (NAFCU) hailed Federal Housing Finance Agency’s (FHFA) Director Mel Watt’s announcement today that his agency plans to keep its policy of allowing debt-to-income ratios above 43 percent for some loans purchased by Fannie Mae and Freddie Mac. Watt also stated that FHFA will not reduce the current limits on the size of loans that can be purchased by the GSEs.
“NAFCU thanks Director Watt and his agency for listening to concerns raised by NAFCU and its member credit unions about the need for flexibility in providing mortgages and to avoid unnecessary changes that could disrupt the housing market,” said Carrie Hunt, NAFCU’s senior vice president of government affairs and general counsel.
Watt also said FHFA will seek comments on guarantee fee increases. NAFCU urged that the hikes set to take effect earlier this year be withdrawn, and Watt postponed them pending further review.
NAFCU met with Watt last month and raised these issues with him, that the agency should not increase the guarantee fees and not decrease the conforming loan limits.
The National Association of Federal Credit Unions is the only national organization that focuses exclusively on federal issues affecting credit unions, representing its members before the federal government and the public.