The severity of some of the proposals in FHFA’s request for information on PACE financing suggests the agency intends to take some drastic steps.

The proposed rule seeks to modify the minimum thresholds, frequency and number of scenarios required to bring the stress test rule for regulated entities in line with new rules that apply to other financial institutions.

The decline in advances was concentrated among top-tier borrowers, due to their disproportionate share of FHLB borrowing. (Includes data chart.)