Mortgage servicing rights are up for grabs, and it seems credit unions, which are largely exempt from buying other firms’ MSRs, want a piece of the pie.
The National Association of Federal Credit Unions wrote a letter in support of the National Credit Union Administration’s push for more investment opportunities for credit unions.
While the NCUA wants regulators to consider allowing credit unions to invest in Treasury Inflation Protected Securities, the NAFCU also wants regulators to consider giving credit unions a shot at mortgage servicing rights.
“We think credit unions are well equipped for expanded investment powers,” said Tessema Tefferi, regulatory affairs counsel for NAFCU.
“Unfortunately, they are not allowed to service mortgages that they have not issued.”
Still, Tefferi says credit unions have the relationship skills to succeed in the space if allowed, prompting the push for a movement to allow the firms to invest in MSRs.
