Freddie and lender trade groups circled the wagons in opposition to many of the mortgage-related provisions in a proposed rule to change capital requirements for large banks.
A tangled web of climate risk, shady insurers, shoddy ratings services and lax insurance rules at the GSEs may snarl Fannie Mae and Freddie Mac in unexpected counterparty risk.
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.
Small depositories warn changes at the FHLBs could increase members’ costs and reduce access to FHLB funding. Worse, these changes could take place without formal rulemaking.
Thousands of stakeholders responded to FHFA’s RFI on the prospect of the GSEs establishing tenant protections for the multifamily properties they back. Most respondents were tenants.
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.
Andrew Davidson & Co. executive Richard Cooperstein says the regulatory capital requirements for the GSEs should be set at 1.5 times risk capital, about 1.13%.
The Council of the Federal Home Loan Banks and the Federal Housing Finance Agency find themselves on opposite sides in a debate over the mission of the FHLBanks.
At FHFA’s direction, the GSEs have been working to ensure lenders can identify condo projects that are ineligible due to deferred maintenance or characteristics like excess commercial space or investor concentration.
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