With 95 million members and counting, the National Association of Federal Credit Unions is advising lawmakers to create a new secondary mortgage market that features at least two government-sponsored enterprises.

The National Association of Federal Credit Unions (NAFCU) sent another letter to members of Congress this week, asking them to preserve a component of the secondary mortgage market that meets the needs of credit union members.

NAFCU believes there should be at least two Government-Sponsored Enterprises (GSE). In doing so, it would force competition in the secondary market, allowing equal access for credit unions.

NAFCU said they support a model for GSEs that is consistent with a cooperative or a mutual entities model. NAFCU's ideal plan would give each GSE a board of directors, regulatory oversight by the Federal Housing Finance Agency and the obligation to maintain strong capital standards.

Unlike critics of Fannie and Freddie, NAFCU does not support  full privatization of the GSEs due to serious concerns that small community-based financial institutions will be shut out from the secondary market.