FHLBanks and housing advocates square off over issues, such as the banks’ mission, how they benefit housing finance and, surprisingly, whether they receive a federal subsidy.
Despite the added cost and delay, Hamish Hume said it was advantageous for the plaintiffs’ team to have to hold a second trial after the first one ended in a hung jury.
A regulatory interpretation released this week by FHFA involving cooperativas in Puerto Rico may begin the formal implementation of key recommendations in its review of the FHLBank system.
The former FHFA director says Congress will never act, but that the GSEs should create subsidiaries, then complete an initial public offering to get out of government control.
Under the terms recommended in FHFA’s review of the Federal Home Loan Banks, 85 current members would fail to meet the 10% mortgage-related asset rule.
The regulator’s plan to refocus the FHLBanks on housing finance may take some time to get underway. Changing the eligibility requirements for membership, though, doesn’t seem to be likely.
FHFA joined the rest of the Biden administration in a government-wide effort to keep renters in their homes, but some stakeholders say one-size-fits-all solutions won’t work.
Consolidating FHFA’s authority to support fair housing and fair lending laws under the umbrella of the GSEs’ equitable housing finance plans will improve access to mortgage credit for underserved communities, supporters say. The GSEs, however, see key problems.