The new guidance relies on an “activities-based” approach to identifying the risks a nonbank may pose to the financial system.

After the FHFA director left the stage at a Federalist Society event, a panel of housing experts took issue with almost every facet of the Trump administration's plan.

Layton notes that in the first full quarter under the new UMBS regime the Freddie discount fell to just 1 basis point, 80% off its historic average, and dramatically lower than the 10 bp gap in 1Q19.

The share of QM patch loans at the GSEs — that is, loans exceeding 43% DTI — has dropped dramatically in the past year.

The NPL sold by the enterprises had an average delinquency of three years and a loan-to-value ratio of 92%. Fannie accounted for 78,281, or two-thirds, of these sales between Jan. 1 and June 30.

Part of the problem is that the current proposed rule was a product of the previous director and much has changed since the rulemaking began a year ago.