If the Financial Stability Oversight Council gets its way, GSE capital standards will be tighter than what many in the industry want. Is that a problem? Opinions vary.

Eric Kaplan of the Milken Institute said the best possible explanation for the FHFA director’s remark is he thinks the GSEs may still have some of that profit-at-any-cost mentality that got them into trouble a decade ago.

One of the key functions of the GSEs is to pool risk nationally for the benefit of underserved borrowers, and any capital framework for the enterprises has to build in this cross-subsidy, according to housing advocates.

Trade groups point out the irony of raising mortgage rates at a time when the Federal Reserve is spending more than $40 billion a month on agency securities in an attempt to lower the cost of buying or refinancing a loan.

The new standards are based on the government-sponsored enterprises’ cash flow needs during periods when they may not have access to the debt market.

The Consumer Financial Protection Bureau has ratified all regulatory actions taken between Jan. 4, 2012, and June 30, 2020.

Independent mortgage bankers heaved a sigh of relief after the Federal Housing Finance Agency said it will re-propose the minimum financial eligibility requirements for single-family seller/servicers.

Industry stakeholders believe this is a sign the GSEs are on track to undergo their long-expected public offerings.

Lawmakers questioned Federal Housing Finance Agency Director Mark Calabria on a wide range of issues, including extending the timeline, and expanding the scope, of the eviction moratorium.

The FHFA has adopted bank-like capital standards for Fannie and Freddie, but the result won’t be bank-like returns on equity, making a public stock offering for the two entities more difficult.