FHFA’s plan to remove the term reputational harm from the suspended counterparty program regulation appears to have near universal support from mortgage industry stakeholders.
Industry stakeholders welcomed the idea of reducing the regulatory burden faced by the FHLBanks, but they also want insurance that the system will continue to serve their interests.
More than 100 lenders have sought approval to participate in the GSEs’ pilot program for VantageScore 4.0. MBS investors are also seeking measures to prevent gaming, increase data transparency and ensure the GSEs can accept applications with more than one score.
The rule change would reduce regulatory costs and effort for both the FHLBanks and FHFA, dovetailing with Trump administration plans to simplify regulation for federal agencies.
FHFA wants to claim exemptions “for certain system of records to ensure the agency can effectively carry out its statutory responsibilities while safeguarding sensitive information.”
The Federal Home Loan Banks say the supervisory haircut federal regulators proposed applying to their consolidated obligations when held as collateral is too large and may impair pricing and liquidity.