New Chief of Staff at CFPB was Staff Director of the House Financial Services Committee. The CFPB named a new chief of staff Jan. 5: Kristen Sutton Mork, who’s leaving her post as staff director of the House Financial Services Committee. The announcement did not come from the CFPB – it came from Rep. Jeb Hensarling, R-TX, chairman of the HFSC, who mentioned it in an email sent to members of the media.... Republican Senator Wants Leandra English Investigated. Sen. Ron Johnson, R-WI, reportedly has asked the U.S. Office of Special Counsel to probe Leandra English’s move to “burrow” into a “career position” at the CFPB. One major broadcast news organization, citing a letter from Johnson, reported last week that Johnson asserted her move was “hastily approved” as part of “a flawed vetting process” in the wake of President Trump’s election. The report could not be immediately confirmed.

Kristen Sutton Mork will leave her post as staff director of the House Financial Services Committee to become chief of staff at the Consumer Financial Protection Bureau.

Rep. Hensarling said Mork will assume her new role in the coming weeks.

It appears that many lenders may have what is known in the industry as “redundant reserves”…

Both GSEs are expected to need a draw from the U.S. Treasury, thanks to the passage of the Tax Cuts and Jobs Act that will reduce the corporate tax rate and result in $15.3 billion in one-time charges for the pair. With the tax rate being reduced from 35 percent to 21 percent, the GSEs now have to measure their net deferred tax assets using the new rate. According to recent Securities and Exchange Commission filings, Fannie Mae expects to take a one-time charge of $10.0 billion and Freddie Mac is bracing for a $5.3 billion charge.

Some observers think that resolving the long-running conservatorship of Fannie Mae and Freddie Mac this year is closer than it has ever been, but they also say political differences present a number of challenges. There has been an uptick in momentum the past few months and the recent deal between the Federal Housing Finance Agency and the Treasury that allows the GSEs to retain $3 billion in capital is an optimistic sign of progress to many. Moreover, the Senate Committee on Banking, Housing, and Urban Affairs is working on a draft of a GSE reform bill, and the House Financial Services Committee has held a handful of hearings on GSE reform issues in the fourth quarter in preparation for drafting legislation.

What's next for Jeb Hensarling? FHFA or Wall Street?

Investors might be seeing better performance from the credit rating agencies these days. In two new reports, the Securities and Exchange Commission says ratings firms are more compliant and are utilizing information technology to a greater extent, all while remaining competitive, especially some of the smaller ones.

Syncora Guarantee, Inc., an insurer of structured-finance transactions, has settled a long-running dispute with Greenpoint Mortgage Funding over hundreds of millions of dollars in losses on bundles of soured home-equity mortgages held in trust.

Progressives are worried that in 2019 a new Federal Housing Finance Agency director will takeover, undoing much of what they like about the current system…