DeMarco referenced a report published by the FHFA Tuesday that provided an update on the progress of the CSP. In that report, the FHFA said CSS plans to convert its associates to CSS employees and to stand up its own corporate functions, including a human resources and benefits platform and financial systems, in the first half of 2016.

Click here to read the full report.

DeMarco also reassured his credit union audience that they shouldn't be worried about secondary mortgage market access in a post-Fannie and Freddie world. Instead, credit unions should embrace it.

"The irony is so many small lenders are concerned, they say if there's no Fannie or Freddie, we won't have access to the secondary markets; the big banks will keep us out," he said. "Says who? How was Fannie and Freddie so great? I had to get rid of small lender penalties – the big lenders got better pricing – so why would you want to go back to that system? I think you'd want a system where you could compete with big lenders."

He urged credit unions to pay attention to the common securitization platform and credit risk transfers because they provide opportunities that are member focused and have strong underwriting.

"Credit unions are private investors," he said. "You know the credit risk of your borrowers better than other lenders. Credit risk transfers allow you to own that credit risk, so think about how as credit unions, can you make credit risk transfers an effective way of competing in the mortgage space."

TILA-RESPA Integrated Disclosure compliance enforcement was also an audience concern. DeMarco said the topic has been a consistent and constant theme he's heard from every type and size of mortgage lender. He also said a number of lawmakers have been hearing from their constituents that they're concerned about the uncertainty of what happens when TRID goes online. He added he didn't know whether legislation to delay the enactment of the compliance requirement or provide a safe harbor for lenders would be enacted.

Legislation to reform the government sponsored enterprises has stalled in Congress, DeMarco said, but he added that Sen. Richard Shelby's (R-Ala.) regulatory relief bill included some incremental steps toward GSE reform.

"In the Senate, they've said if we can't do a Big Bang bill, what can we do to incrementally move this forward," he said.

DeMarco referenced an Aug. 20 opinion piece he wrote that was published in the Wall Street Journal. In that OpEd, he wrote in support of Congress passing legislation this year that would mandate that within four years all securitizations involve enough risk transfer so taxpayers are left with credit risk only in catastrophic circumstances.

In the height of the financial crisis, almost all mortgages – nine out of 10 – were financed through the FHFA. That number has decreased, he said, but is still too high.

"It's still three out of four, which tells us American taxpayers are still on hook for a great deal of mortgage risk in this country," he said. "And also underwriting in the marketplace continues to be greatly affected by the government, not market forces."