WASHINGTON–America’s Credit Unions has sent separate letters to the FHFA related to regulations around mortgages and stablecoins, respectively.
In its first letter, the trade group told the Federal Housing Finance Agency (FHFA) that any changes made to streamline the regulatory framework around the mortgage market must not come at the expense of credit unions’ role in providing low- and moderate-income borrowers with the ability to obtain mortgage credit.
The trade group sent a letter to the FHFA over what it said are the potential negative effects of the Federal Housing Finance Agency’s (FHFA) 2026-2028 Enterprise Housing Goals on credit unions.
‘Goes Too Far’
While the FHFA seeks to reduce regulatory burden and ensure operational efficiency across the secondary mortgage market, the proposed rule as currently written seems to go too far, America’s Credit Unions said, adding the move could potentially negatively impact low-income and minority mortgage originations.
In the letter, Regulatory Affairs Counsel Tyler Maron outlined the primary credit union concerns, specifically pointing to the reduction of the single-family low-income purchase subgoal and the merging of the low-income and minority census tract benchmark subgoals.
It is crucial the FHFA ensures that credit unions and other depository institutions have continued access to the secondary mortgage market, Maron wrote.
‘Reduced Liquidity’
“Reduced focus on these communities may lead to reduced liquidity for community lenders like credit unions and consequentially, reduced homeownership,” America’s Credit Unions said. “Numerous borrowers could be excluded from the market if the new planned benchmarks for low-income mortgages take effect.:America’s Credit Unions further noted the proposed rule would also consolidate the current low-income census tracts home purchase subgoal and the minority census tracts home purchase subgoal, with the letter arguing that while there is considerable overlap between the two, this overlap does not consider the 30% of the minority census tract that is distinct from the low-income census tract.
Recommendations Made to Treasury on Stablecoins
Separately, in a second letter, America’s Credit Unions responded to an advanced notice of proposed rulemaking (ANPR) from Treasury with a letter that stressed credit unions’ ability to effectively provide Stablecoin services while also calling for clear regulatory guidelines and coordination between Treasury and the NCUA.
Treasury is seeking the input in the wake of the recently passed GENIUS Act, which creates a regulatory framework around crypto and stablecoins.
As the CU Daily reported here, several credit unions have already announced plans for stablecoins.
Recommendations Made
In its letter, America’s Credit Unions Director of Innovation and Technology Andrew Morris outlined specific recommendations for the Treasury Department, including:
- Work closely with the NCUA to provide credit unions with ample clarity surrounding statutorily authorized activities and to minimize the risk of regulatory arbitrage
- Issue guidance in coordination with the NCUA that describes the extent to which stablecoin reserves may be used by a credit union
- Provide detailed technical and operational standards for AML and sanctions compliance specific to stablecoins
- Offer further clarification of the terms “pay,” “interest,” “yield,” and “solely” under section 4(a)(11) of the GENIUS Act to ensure that Congress’ intended prohibition on interest bearing features is effectively implemented
What’s ‘Essential’
“While industry engagement with stablecoins is still at an early stage, creating a safe, tailored, and competitively fair regulatory framework is essential to supporting credit unions in their ability to serve members,” America’s Credit Unions said.
The full letter can be found here.
