WASHINGTON– America’s Credit Unions President and CEO Jim Nussle has offered additional insights into a meeting he attended with Treasury on the future of the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac and where credit unions fit.
The GSEs have been under federal conservatorship since the financial crisis 15 years ago, and the Trump administration has indicated it wants to return both companies to private ownership.
As the CU Daily reported here, Nussle joined with ACU’s head of regulatory advocacy, James Akin, in a Treasury roundtable discussion on GSE reform.
Nussle described the Treasury representatives as “very thoughtful” and said they were “clearly considering all the different options of whether, how, and when to consider taking the GSEs out of conservatorship.”
Issue of ‘Affordability’
“One of the things that I pressed them on is to keep in mind that this should be part of an overall view about affordability for housing in general,” said Nussle. “What I mean by that is I think we all probably have a story … and maybe it’s our own family or our own kids and they can’t afford to buy a home these days. Certainly not at the same juncture in their careers or age chronologically that we were able to. Affordability is out of reach for many Americans until they are into their thirties or forties or even fifties. That’s unlike it was just a few years ago and certainly back prior to the financial crisis.”
Nussle, speaking for himself, said he urged Treasury to consider affordability as part of overall housing policy.
“Credit unions are at the tip of that one as one of the originators (of mortgages), particularly in underserved areas of our country or rural areas and small towns where banks have abandoned the area,” he said. “The only way (for people to buy homes) in some of those underserved areas is for credit unions to be able to lead the charge there, so our access to the cash window, our access and parity to these programs is going to be important.”
Only Way to Build Wealth
For many people, Nussle added, being able to purchase a home is the only real way they have of building wealth for the future.
Nussle said Treasury listened to America’s Credit Unions’ input but made no commitments other than to say it would remain in contact on the issue of the GSEs and their conservatorships.
Other Points
Better at Storytelling
Nussle said one of the areas of discussion during the trade group’s recent Congressional Caucus was on being more effective in storytelling, specifically by using data to tell that story and to build relationships.
‘Rumors’ of Reconciliation Bill 2.0
Fresh off a victory in keeping changes to the credit union tax status out of the recently passed reconciliation bill, Nussle said there are “rumors” of another reconciliation either late this year or, more likely, in 2026.
“That means that credit unions may again find themselves not only of an opportunity position but also in the challenge position, particularly on the tax (status), so building on that tax momentum will be important,” he said. “We worked hard to increase the intensity of our storytelling, of our data that we shared with members of Congress as well as their staff and technical staff about credit unions and how we not only deliver for our members but also how we raise up our communities.”The NDAA in the Senate
With the National Defense Authorization Act (NDAA) having passed the House, Nussle said America’s Credit Unions is watching the bill in the Senate to ensure the Credit Card Competition Act or language from that legislation is not attached as amendments.
