While overall governance of the 12 Federal Home Loan Banks passed muster in 2010, the Federal Housing Finance Agencys annual examination identified a number of shortcomings that should be addressed during the coming year.In 2010, FHFA has a concern about the level of experience and expertise of certain executives and executive turnover at some FHLBanks, said the FHFAs annual report to Congress. While board and management oversight generally improved during 2010 at most FHLBanks, there remains room for improvement at some FHLBanks.
Non-agency mortgage-backed securities continue to affect the financial performance of several Federal Home Loan Banks, according to the Federal Housing Finance Agencys annual report to Congress.In aggregate, the FHLBanks hold 1,622 non-agency MBS with a par value of $46.9 billion. Although all of the non-agency MBS had triple-A ratings when purchased, the portfolios are generally of poor quality credit, said the FHFA.
Fannie Mae and Freddie Mac shareholders would fall to the very back of the line of creditors under the terms of a new rule submitted to the Federal Register by the Federal Housing Finance Agency.The FHFAs final rule follows up on its proposed rule released last year to codify the Finance Agencys terms of conservatorship and receivership operations for Fannie, Freddie and the Federal Home Loan Banks.
The controversial Consumer Financial Protection Bureau plans to hit the ground running when it officially opens its doors for business July 21, whether or not the agency has a director in place. Steve Antonakes, assistant director for large bank supervision at the CFPB, told industry executives last week that the agency is ready to begin conducting point-in-time examinations of banks with more than $10 billion in assets, exams that will last anywhere from four to 12 weeks, based on the size and complexity of the institution. A clean exam means...
A broad coalition of industry trade groups, consumer advocates and community groups urged federal regulators to open the door to qualified residential mortgage status for loans with low downpayments, but offered only the mildest support for private mortgage insurance. The Coalition for Sensible Housing Policy reiterated criticism of the QRM standard drafted by federal regulators as part of the securitization risk-retention proposed rule earlier this year that has been made...
The Federal Housing Finance Agencys failure to recognize and quickly provide law enforcement authorities with information about allegations of fraud and other potential criminal conduct presents a significant risk for the agency and the government-sponsored enterprises it regulates, concluded the FHFAs watchdog. The Office of the Inspector General of the FHFA this week issued...
Federal banking regulators have the unenviable task of harmonizing two mortgage disclosure documents one under the Truth in Lending Act and one under the Real Estate Settlement Procedures Act for consumers who generally wont read them and dont fully understand them when they do. And mortgage lenders have the same kinds of stubborn obstacles to overcome if theyre going to be able to more effectively design and successfully market products consumers will respond
The White House is reportedly considering nominating former banker Raj Date, a top deputy of Consumer Financial Protection Bureau interim head Elizabeth Warren, to be the first formal director of the nascent agency...
Federal Roundup Federal Reserve Board TILA/HOEPA fee-based triggers. The total points and fees payable by borrowers utilizing certain closed-end home mortgages at or before closing that trigger additional disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act have been raised to $611 or 8 percent of the total loan amount, the Federal Reserve Board announced in the June 20, 2011, Federal Register. The effective date is Jan. 1, 2012... MORE
PMI Mortgage Insurance Co. has launched its MODEL servicer program; the Dodd-Frank Wall Street Reform and Consumer Protection Act is an epic financial services law of unprecedented scale; American voters strongly support pro-housing politicians; MORE...