All House Republicans and 14 House Democrats voted to undo FHFA’s revision of GSE loan-level pricing adjustments. The bill would also require future changes to the grids to follow risk-based pricing.
Former FHFA Acting Director Ed DeMarco and the American Bankers Association have endorsed releasing the GSEs from conservatorship. Industry observers aren’t optimistic about any moves in the near term.
FHFA is expected to produce a long list of recommended actions to modernize the FHLBank system, but large-scale reform will probably require legislation.
Affordable housing advocates say Fannie Mae and Freddie Mac should do more to prevent investors from exploiting loopholes to profit off of LIHTC-funded properties.
The Federal Housing Finance Agency’s auditor concluded that the agency complied with an executive order making climate-related risk a priority for financial regulators.
The interagency task force on property appraisal and valuation equity has identified many steps Fannie Mae, Freddie Mac and the FHFA can take to reduce racial bias in the appraisal process.
The collapse of Champlain Towers South in Florida resulted in the GSEs issuing temporary guidelines tightening eligibility requirements for condo loans. Industry representatives have denounced the new rules as draconian.
Biden’s FHFA nominee Sandra Thompson has made it clear that the agency can’t end the conservatorships without help from the Departments of Treasury and Justice and, most importantly, Congress itself.
If the Senate fails to resolve the debt ceiling in time, the federal government’s credit rating will likely be downgraded to “restricted default.” So, too, will the ratings on GSE debt.
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