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  • Comment Detail

  • Date: 05/22/24
    First Name: Jessica
    Last Name: Avery
    Organization: Cooperative Credit Union Association
    City: Marlborough
    State: N/A
    Attachment: View Attachment
    Number: 2024-N-5

  • Comment

    The Association supports Freddie Mac’s proposal to purchase single-family, closed-end second mortgages from credit unions and other financial institutions that are approved Sellers/Servicers to Freddie Mac.

    Freddie Mac’s purchase of second mortgages would further Freddie Mac’s congressionally established purposes by giving credit unions a new source of mortgage-lending liquidity. This program would allow credit unions to free up their balance sheets by selling second mortgages held in portfolio to Freddie Mac and/or engaging in an originate-to-securitize model for second mortgages that is not currently practicable in the private capital markets.

    Freddie Mac and Fannie Mae typically have minimum annual mortgage volume requirements that a credit union must meet each year to become or remain an approved Seller/Servicer. We urge the FHFA to ensure that Freddie Mac and Fannie Mae approve and retain smaller credit unions as Sellers/Servicers consistently with the purposes of the Small Business Act.