The decision, hinted at in numerous (recent) press briefings by FHFA Director Mark Calabria, is not expected delay to companies’ exit from conservatorship.

The Treasury Department argued producing the documents would be “unduly burdensome” and “disproportionate to the needs of the case.”

The legislation appears to be a de facto extension of the qualified-mortgage patch, according to Cowen analyst Jaret Seiberg. He said the bill could be positive for housing by ensuring the supply of mortgage credit is not constrained.

It would be a radical change, but the FHFA may allow nonbank mortgage firms to become FHLB members, giving them access to advance window...