WASHINGTON–Now that the Housing for the 21st Century Act has passed the House, what should credit unions expect should it eventually hit the president’s desk for his signature?
Additional housing starts that should generate new mortgage loans, among other benefits, according to Jason Stverak, chief advocacy officer with the Defense Credit Union Council. Stverak said the legislation seeks to remove numerous obstacles and barriers to the building of new homes, which should in turn lead to an improvement in the nation’s housing supply.
“That will spur credit unions and other financial institutions to be there to provide the lending so people can buy their first home, or for some, to buy their secondary homes,” he said. “That will open up that market to meet demand.”
Stverak said he anticipates other housing-related legislation will also be moving in the current Congress and DCUC plans to work to ensure credit unions are at the table during those discussions.
Overwhelming Passage
The legislation, which was backed by credit unions, passed the House with an overwhelming 390-9 vote and had the backing of credit unions. It includes the Credit Union Board Modernization Act as an amendment, as well as other CU-supported provisions.
The Credit Union Board Modernization Act amends the Federal Credit Union Act to reduce the mandatory meeting frequency for qualifying federal credit union boards of directors from monthly to at least six times annually (at least once per quarter). This bipartisan legislation aims to reduce regulatory burdens, allowing more flexibility for directors.
Passage of Other Legislation Urged
Moving forward, Stverak called on Congress to be “bold” and to pass legislation expanding NCUA’s Central Liquidity Fund and the Veterans Member Business Lending legislation, on which it has joined with the American Legion in pushing in Congress.
Two Letters Submitted
Separately, DCUC submitted a letter to House Financial Services Subcommittee on Housing and Insurance Chairman Mike Flood and Ranking Member Emanuel Cleaver following the February 11, 2026, hearing, “Homeownership and the Role of the Secondary Mortgage Market.”
DCUC thanked the Subcommittee for its focus on how the structure and functioning of the secondary mortgage market affects housing affordability and access to mortgage credit.
DCUC said it sought to voice that for military families and veterans, housing affordability is a readiness and financial security issue shaped by frequent relocations, deployments, and tight housing markets near installations. DCUC stressed the importance of a well-functioning secondary mortgage market that provides reliable liquidity and equitable access for community-based lenders, particularly for FHA and VA lending that serves military borrowers.
Three Guiding Principles
“As the Subcommittee examines the role of the secondary market, DCUC respectfully urges policymakers to consider not only aggregate liquidity and investor demand, but also how market structure affects the ability of smaller, member-focused institutions to originate and deliver mortgages efficiently,” DCUC’s Stverak wrote. “Credit unions rely on predictable, operationally workable secondary-market channels to recycle capital and continue serving members—particularly through government-backed programs such as FHA and VA lending that are critical to military and veteran borrowers.”
DCUC outlined three guiding principles for policymakers: preserving equitable secondary-market access for community lenders; reducing operational frictions that delay or complicate mortgage delivery; and responsibly supporting affordability innovations that expand housing supply.
DCUC also highlighted the need to address misconceptions and process barriers that can disadvantage VA borrowers, noting that a more efficient secondary market helps ensure earned benefits translate into real homeownership opportunities.
DCUC Supports Targeted SBA Reforms
DCUC also submitted comments to House Small Business Committee Chairman Roger Williams and Ranking Member Nydia Velázquez ahead of the Committee’s markup of H.R. 7401, H.R. 7396, and H.R. 7412.
“From DCUC’s perspective, the measures before the Committee share a common theme: restoring trust, transparency, and accountability in SBA programs while ensuring those programs remain accessible and workable for responsible lenders and legitimate borrowers,” wrote Stverak.
In its letter, DCUC expressed support for H.R. 7401, the Small Business Lending Fraud Prevention Act, as a confidence-building measure that reinforces transparency and accountability within SBA loan administration. DCUC also supported H.R. 7396, the Native American Entrepreneurial Opportunity Act, praising the codification of SBA’s Office of Native American Affairs while encouraging thoughtful consideration of program continuity. In addition, DCUC backed the goals of H.R. 7412, the Put America on Commission Act of 2026, while urging careful coordination with existing fraud-reporting and confidentiality frameworks to avoid unintended consequences for compliant lenders.
‘Essential Tools’
DCUC stressed that SBA programs are essential tools for credit unions serving veterans, military spouses, and underserved communities, and encouraged Congress to ensure reforms strengthen trust and oversight while preserving timely access to capital for legitimate borrowers and responsible lenders.
