FHFA wants the authority to suspend counterparties that have been sanctioned by other federal or state regulators. The agency argues that the outcomes of certain civil actions are analogous to criminal convictions.
The proposed rule would require mortgage originators to adopt policies and procedures to ensure automated valuation models protect against manipulation of data and ensure confidence in the appraisal estimates.
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a congressional hearing this week, the FHFA director faced four hours of questioning, including queries on the recently rescinded proposed fee based on a borrower’s DTI ratio.