FRB

Browse articles from all of our Newsletters related to FRB.

September 11, 2017 - Inside the CFPB

Other News in Brief/Industry News in Brief

State Regulators Start Work on a Next-Generation Technology Platform. The Conference of State Bank Supervisors has initiated what it characterizes as a major redesign of the Nationwide Multistate Licensing System (NMLS), which is the core technology platform state bank regulators utilize. According to the CSBS, the redesign will enable the regulators to transform the licensing and supervision of non-bank financial institutions, including financial technology companies, or so-called fintechs. “Technology and data are powerful tools that can create sweeping benefits throughout the financial regulatory system,” said Louisiana Office of Financial Institutions Commissioner John Ducrest. “And that vision drives our efforts with the next-generation NMLS. We are committed to nothing less than modernized state regulation for a modernized financial services industry.” The ...


September 8, 2017 - Inside MBS & ABS

Once Banks Got LCR Compliant, They Opted For More GSE MBS, Fed Researchers Find

Partly to comply with liquidity cover ratio requirements imposed in the wake of the financial crisis, U.S. banks ramped up their holdings of high-quality liquid assets. But once they got compliant, many of them shifted their asset allocations more to agency MBS and U.S. Treasuries, according to researchers at the Federal Reserve. This could have implications for the U.S. central bank’s massive balance sheet over the long haul, they added. As of Jan. 1, 2015, large banks in the U.S. have needed...


September 7, 2017 - Inside Mortgage Finance

Some Banks Expected to Benefit From Proposed Delay In Tougher Capital Rule for Mortgage Servicing Assets

A proposal by federal regulators to delay tougher capital requirements for mortgage servicing assets will have a “marginally positive impact” on banks subject to the proposal, according to banking regulators. Near the end of August, the Office of the Comptroller of the Currency, the Federal Reserve and the Federal Deposit Insurance Corp. issued a proposed rule that would extend the current treatment on mortgage servicing rights and related assets, delaying tougher standards established by Basel III. The proposal would apply to banks that aren’t subject to the “advanced approaches” capital rules – generally banks with less than $250 billion in total assets. “For small banking organizations that have significant amounts of MSAs ... the proposal could...


September 1, 2017 - Inside Nonconforming Markets

Alternative to Traditional Mortgage Proposed

The 30-year fixed-rate mortgage is due for an overhaul, according to a proposal published by the Federal Reserve. Members of the Fed’s research staff suggest that banks should offer a type of mortgage with no downpayment requirements that essentially automatically refinances. Wayne Passmore, senior adviser in the Fed’s division of research and statistics, and Alexander von Hafften, a senior research assistant in the division, authored a working paper published by the Fed last week. Passmore and von Hafften cited...


August 25, 2017 - Inside MBS & ABS

Signs are Bullish for Mortgage-Investing REITs – Thanks, In Part, to the Federal Reserve and Its Balance Sheet Policy

Real estate investment trusts that invest in MBS and other mortgage-related assets are having a field day this year, raising billions of dollars in new capital while seeing their share prices increase across the board. Moreover, according to an analysis by Inside MBS & ABS, several top-ranked REITs are now trading much closer to their 52-week highs than their lows while maintaining hefty dividend payments to their shareholders. Annaly Capital Management, for example, the largest holder of agency MBS at $75.2 billion, is...


August 18, 2017 - Inside MBS & ABS

FOMC Minutes Shed More Light on Upcoming Efforts to Unwind Balance Sheet, Normalize Rates

The Federal Reserve this week released the minutes of the July meeting of its Open Market Committee, providing more detail and color regarding the central bank’s deliberations on shrinking its enormous holdings of agency MBS and the future path and timing of interest rate adjustments. FOMC members started their portfolio deliberations by discussing the appropriate time to start reducing the Fed’s securities holdings, a plan that had been formally announced in June. “Participants generally agreed that, in light of their current assessment of economic conditions and the outlook, it was appropriate to signal that implementation of the program likely would begin relatively soon, absent significant adverse developments in the economy or in financial markets,” according to the minutes. Many members of the committee noted...


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The year is almost 75% done. How is mortgage origination volume at your shop?

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