The ranking member of the Senate Banking Committee has demanded that the FHFA director meet with committee staff to prove the GSEs’ new pricing grids don’t amount to more cross-subsidy.

Fannie and Freddie modified their policies to support lower-income borrowers by allowing greater use of downpayment assistance and equity-sharing programs.

FHFA has asserted that most of the changes to the GSEs’ loan-level pricing adjustment grids are risk based or meant to meet the GSEs’ capital requirements.

The chair of the Senate Banking Committee wants FHFA to examine the implications of the Federal Home Loan Banks becoming the lender of last resort for struggling financial institutions.

The regulator will require additional sign-offs and documentation before the FHLBanks can change their internal market risk models.

The new rule would solidify the GSEs’ equitable housing finance plans, fair housing reporting and collection of language preference data.

For Fannie, the most obvious change was a major expansion of the EHFP’s target audience. In its initial plan, the enterprise had focused almost exclusively on Black homebuyers.

New definitions in the amended rule will expand the number of colonias eligible for credit under the duty-to-serve obligations of the GSEs.

The regulator of the GSEs wants to know if there are ways it can help improve protections for the tenants of apartment buildings financed by Fannie and Freddie.

By the end of 2025, FHFA expects Fannie and Freddie to implement the use of FICO 10T and Vantage 4.0 into the mortgage process. Industry participants can expect a lot of hand-holding along the way.