NAFCU is still lobbying to have the Federal Housing Administration lengthen the amount of time consumers who strategically default on a mortgage loan have to wait to apply for another FHA-insured loan.

In a letter Monday to the leadership of the House Financial Services Committee, the association made the case that Fannie Mae, the organization which buys many mortgage loans, has imposed a waiting period of seven years before a strategically defaulted borrower could qualify for a new mortgage loan destined for the secondary market.

FHA, by contrast, has a waiting period of three years.

“In short, because of the discrepancy in lockout periods related to strategic default, FHA can be viewed as a safe haven for those who strategically defaulted on previous mortgages,” NAFCU wrote in its letter about a piece of FHA reform legislation. “This risk to the taxpayer, encouraged by FHA policies, is a critical part of the safety and soundness conversation that must be explored.”