Allowing the FHLBanks to offer letters of credit backed by locally issued tax-exempt bonds could speed work on waste and water treatment facilities, road and bridge repairs and other municipal infrastructure.
The deal will help support the development of 1,500 units of senior housing in Arizona, more than half of which will be affordable to renters with incomes lower than 50% of AMI.
A group of 22 insurers and reinsurance companies are now on the hook for $844.8 million in mortgage credit risk on $23.1 billion in single-family loans.
Lenders argue the temporary measures adopted by Fannie and Freddie to promote condo safety unnecessarily raise costs for borrowers and present liability issues for HOAs and cooperatives.