Critics argue that the mechanical method for determining the loan limits distorts the market and makes it harder for the GSEs to meet their affordable housing goals.
Plaintiffs in Collins v. Yellen promptly informed the Fifth Circuit Court of Appeals of the former president’s recent letter to Sen. Rand Paul, R-KY, possibly forestalling a decision by the court.
Sandra Thompson, the acting FHFA director, said Fannie and Freddie have responsibilities beyond the narrow affordable housing goals to ensure access to credit for borrowers in all parts of the country.
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.