Next Ginnie Mae Leader must recognize CU mission, structure

The next president of the Government National Mortgage Association (GNMA, or Ginnie Mae) must understand the unique mission, structure, and operation of America’s credit unions. President Joe Biden nominated Alanna McCargo to serve as GNMA director last month.

CUNA historically does not take a position in presidential nominations—and takes no position on McCargo’s nomination—but wrote to the Senate Banking, Housing, and Urban Affairs Committee to share several priorities in advance of McCargo's testimony. 

“It is critical that the next President of GNMA be able and willing to work to fully understand the intricacies of credit unions, community development financial institutions, and other unique lenders that are primarily focused on servicing their communities,” the letter reads. “Strengthening GNMA’s relationship and approachability for these types of financial institutions will ultimately benefit both GNMA and American homebuyers.”

CUNA notes that GNMA has treated credit unions as non-depository mortgage lenders, and as “non-banks” in its latest mortgage-backed securities guide.

“This is facially inaccurate given the superior quality of credit union mortgages, the diversification of credit union assets, credit unions’ access to liquidity, credit unions’ status as insured depository institutions, and the multiple layers of oversight for regulatory compliance and safety and soundness credit unions undergo,” the letter reads.

In August, your League and CUNA both wrote Ginnie Mae, urging the agency to adopt NCUA’s findings regarding credit union capitalization, given that NCUA addresses the risk profile of each institution it examines.

"We do not believe Ginnie Mae’s treatment of credit unions as “nonbanks” is appropriate," wrote the League. "Ginnie Mae should properly recognize credit unions as depository institutions that are strictly regulated by the National Credit Union Administration (NCUA). NCUA has stringent capital requirements for insured credit unions. Grouping credit unions with nonbank mortgage lenders fails to recognize credit unions as heavily regulated and well-capitalized depository institutions."

Read our letter
Read CUNA's letter