Regulators

Browse articles from all of our Newsletters related to Regulators.

March 10, 2017 - Inside The GSEs

Corporate Tax Reform’s Potential Impact on Fannie and Freddie

Fannie Mae and Freddie Mac could have a harder time recapitalizing if their deferred tax assets are negatively impacted by corporate tax reform, according to one GSE spectator. The Trump administration said it plans to restructure taxes before housing reform. Industry observers, like former Fannie Mae CFO Tim Howard, speculate on what impact that would have on Fannie and Freddie. Howard said that putting housing reform behind tax reform adds a “complication to the task of ultimately recapitalizing the companies, should that be what [Treasury Secretary Steven] Mnuchin chooses to do.” Mnuchin recently made public comments on network news stating that while housing reform is one of his priorities, it’s going to take more time.


February 13, 2017 - Inside the CFPB

Trump Still Fishing for Cordray Replacement, But is it Smart?

President Trump has been in office nearly a month and CFPB Director Richard Cordray is still on the job, despite some early developments that suggested his days as head of the bureau are numbered under the new administration. The most recent headhunting expedition reportedly involved Brian Brooks, currently general counsel at Fannie Mae, who reportedly has close ties to Steve Mnuchin, Trump’s nominee for Treasury secretary, CNBC reported last week. Up on Capitol Hill, Republicans such as House Financial Services Chairman Jeb Hensarling, R-TX, and Sen. Ben Sasse, R-NE, a member of the Senate Banking, Housing and Urban Affairs Committee, both recently called on Trump to sack Cordray. “The bureau’s mission to prohibit ‘abusive practices’ sounds great. But all that ...


February 13, 2017 - Inside the CFPB

CHOICE Act 2.0 Would Retain, Restructure CFPB, Gut its Power

House Financial Services Committee Chairman Jeb Hensarling, R-TX, is looking to retain the CFPB, restructure key parts of the agency, and drastically limit its authority, Inside the CFPB has learned. According to a draft memorandum of the major changes to Hensarling’s Financial CHOICE Act, now dubbed CHOICE Act 2.0, the bureau “is to be retained and restructured as a civil law enforcement agency similar to the Federal Trade Commission, with additional restrictions on its authority,” as follows: Sole director, removable by the president at will. Rule-making authority limited to enumerated statutes. Unfair, deceptive acts or practices authority repealed in full. Supervision repealed. Consumer complaint database repealed.• Market monitoring authority repealed. Enforcement powers limited to cease-and-desist and civil investigative demand/subpoena powers....


Poll

With rates higher this year, there has been talk of lenders liberalizing their underwriting standards in an effort to increase volume and make up for lower refis.

Do you think your shop will loosen standards over the coming three months?

Yes, but not by much.

47%

Yes, by a lot.

5%

Yes and, heck, we may even do non-QM lending.

14%

No, not at all.

26%

No and we may even tighten credit.

7%