Housing Commissioner Carol Galante warned that with interest rates rising, the FHA may have reached a tipping point with its mortgage insurance premiums.
If the case settles, it would be the second time in two years that a case involving disparate impact claims under the Fair Housing Act has settled before the Supreme Court had an opportunity to hear arguments.
Committee Chairman Tim Johnson, D-SD, said the structure of the government guaranty for MBS must be explicit, appropriately priced, and stand behind private capital that is not guaranteed.