The Federal Housing Finance Agency is proposing to amend its regulations on the responsibility of the board, directors, corporate practices, and corporate governances for the GSEs and Federal Home Loan Banks. It also would apply the FHLB strategic business plans to Fannie and Freddie. This means that the GSEs’ boards would have a strategic business plan in effect at all times, which describes how the regulated entity will achieve its statutory purposes. Moreover, there’d be a provision that requires each GSE board to review the strategic plans annually, re-adopt it once every three years, at minimum, and...
Fannie Mae Announces New Board Member. Christopher Herbert was elected as a director on the company’s board of directors. The GSE noted that he has extensive experience relating to housing policy and urban development. He’s been managing director for Harvard University’s Joint Center for Housing Studies since January 2015. The Final Nail in the GSE Reform Coffin: Creation of the $3B Capital Buffer? Although GSE reform appears to be dead in the current Congress, Fitch Ratings issued a report Tuesday predicting that MBS guarantors created in the future to replace Fannie Mae and Freddie Mac will be on solid ground financially. As for why GSE reform failed, Fitch contends...
Fitch said the $3 billion reserve should be sufficient to cover income volatility during “the normal course of business, as seen when interest-rate volatility results in valuation adjustments within the GSEs’ derivative portfolios.”
According to the consulting firm of Garrett, McAuley & Co., some mortgage loan officers at depositories earn at least four-times what their CEOs make...
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