Numerous industry participants support FHFA developing a social bond designation for single-family MBS issuance from the GSEs. There are lingering concerns about the impact on the agency MBS market and borrower privacy.
Outstanding FHLBank advances have only surpassed $1 trillion one other time. Banks and thrifts — including now-failed institutions — boosted their advance usage in the first quarter. (Includes three data charts.)
FHFA’s proposed revisions to the enterprise regulatory capital framework prompted feedback from Fannie Mae and Freddie Mac. The GSEs support various aspects of the proposal while seeking some changes.
FHFA proposed adjusting the capital framework that applies to the GSEs to incorporate planned changes in the usage of credit scores. Lenders want more data before any changes are implemented.
At a congressional hearing this week, the FHFA director faced four hours of questioning, including queries on the recently rescinded proposed fee based on a borrower’s DTI ratio.
FHFA is looking to reduce capital requirements for the GSEs’ issuance of commingled securities. Some are happy with the agency’s plan, while others argue that no capital requirements are necessary.
FHFA is seeking input on the GSEs’ capital framework, which has major ramifications for pricing policies. According to the FHFA, Fannie and Freddie aren’t generating sufficient returns from their single-family business.