Critics say FHFA’s proposed changes to the enterprise regulatory capital framework are a move in the right direction, but the agency still hasn’t addressed the procyclicality of the rule or explained how the new provisions were calculated.
Brian Tomney, Biden’s choice to head the FHFA-OIG, had an unexpectedly smooth ride through the confirmation hearing before the Senate Banking Committee.
The Federal Housing Finance Agency sets new standards for assessing Fannie Mae’s and Freddie Mac’s performance and releases a report assessing its own performance.
Critics say the amendments correct some of the flaws in the rule finalized last December, but it’s still far too conservative when compared to historic losses at the GSEs.
Market forces and regulatory issues outside the control of Fannie and Freddie may make it difficult for them to achieve the proposed affordable housing benchmarks.