Policy changes impacting 15% of GDP in an election year are inherently risky, according to Isaac Boltansky of Compass Point. The result, he said, is likely to be “a long and winding road” toward housing-finance reform.

The severity of some of the proposals in FHFA’s request for information on PACE financing suggests the agency intends to take some drastic steps.

The bulk of Fannie Mae’s and Freddie Mac’s prevention actions were aimed at home retention, with 20,370 loans modified, repayment plans negotiated on 5,965 delinquent loans and 3,328 units receiving some sort of forbearance.

To make sure property markets aren’t creating excessive systemic risk, it’s important for regulators to look at the issue broadly, said FHFA’s Mark Calabria. That’s where an activities-based approach is critical.

FHFA Director Mark Calabria walked back the idea of using a consent decree as part of the agency’s plan to recap and release Fannie and Freddie from conservatorship.

The proposed rule seeks to modify the minimum thresholds, frequency and number of scenarios required to bring the stress test rule for regulated entities in line with new rules that apply to other financial institutions.

Federal regulators have issued a request for comment on a review of credit risk-retention standards tied to the qualified mortgage “patch” and exemptions for community-focused and three- to four-unit mortgages.

In a partial ruling, the U.S. Court of Federal Claims has allowed a collection of lawsuits challenging the net-worth sweep to go to trial.

The FHFA has proposed a rule that would exempt the Federal Home Loan Banks from conducting stress tests required by the Dodd-Frank Act.