Rule Would Require Living Wills For Fannie, Freddie

The Federal Housing Finance Agency announced a new proposed rule Tuesday that would require Fannie Mae and Freddie Mac to have living wills, similar to what many large financial institutions must file under federal law. Under the proposed rule, Fannie and Freddie will have to demonstrate “how core or important business lines would be maintained to ensure continued support for mortgage finance and stabilize the housing finance system, without extraordinary government support to prevent (Fannie or Freddie) from being placed in receivership, indemnify investors against losses, or fund the resolution of (Fannie or Freddie).” “The rule proposed today is an important step toward a stronger housing finance system. Requiring the Enterprises to develop living wills, helps FHFA fulfill its responsibility…

Stimulus Package Includes $25B For Rent Aid

The new $900 billion stimulus package agreed to by Congressional leaders includes additional housing relief, but an advocate is warning that more assistance may be needed after the new year. The deal, which is before the House, incudes $25 billion in rental assistance for families struggling to make monthly payments. It also extends the ban on evictions through the end of January. David M. Dworkin, president and CEO of the National Housing Conference, applauded the deal while cautioning that much work remains ahead. “Help is on the way for millions of renters and small business property owners who for months have faced an impending housing crisis,” Dworkin said. “The $25 billion for rental assistance announced by Congress … is a…

FHA Extends Foreclosure, Eviction Ban

As the Covid-19 pandemic continues to hammer away in the United States, the Federal Housing Administration announced Monday that it is extending the foreclosure and eviction moratorium for FHA-insured mortgages through February 28. The FHA also is extending the deadline for single-family borrowers with FHA-insured mortgages to request forbearance from their lender. Forbearance allows homeowners to defer or reduce mortgage payments for up to six months, along with a possible six-month extension. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability,” HUD Secretary Ben Carson said.   This is the fourth extension of FHA’s eviction and foreclosure moratorium, which bars servicers…

FHFA Proposes GSE Liquidity Rules

The Federal Housing Finance Agency on Thursday announced a proposed rule on liquidity requirements for Fannie Mae and Freddie Mac, including reporting rules and minimum liquidity and funding. The four liquidity requirements in the proposed rule include: A short-term 30-day requirement that is based on a cumulative net cash outflow analysis, plus an additional $10 billion cushion requirement that must be met by highly liquid assets, like Treasury securities.A 365-day requirement extending the short-term cumulative cash outflow analysis to a full year. Over this intermediate term, Fannie and Freddie may count borrowings against certain fixed income instruments that the Fixed Income Clearing Corporation deems eligible collateral (subject to a haircut), which they cannot count under the 30-day requirement. There is…

Biden Officially Nominates Fudge To Lead HUD

President-elect Joe Biden on Thursday officially announced that Ohio Congresswoman Marcia Fudge as the nominee for Secretary of Housing and Urban Development. Fudge, who had wanted to lead the Department of Agriculture, was one of five major appointments unveiled. They include Tom Vilsack (USDA), Denis McDonough (Veterans Affairs), Katherine Tai (US Trade Representative) and Susan Rice (director of White House Policy Council). “This dedicated and distinguished group of public servants will bring the highest level of experience, compassion, and integrity to bear, solving problems and expanding possibilities for the American people in the face of steep challenges,” Biden said. “The roles they will take on are where the rubber meets the road — where competent and crisis-tested governance can make…

Reports: Biden To Nominate Fudge For HUD

President-elect Joe Biden is expected to name Congresswoman Marcia Fudge of Ohio as the Secretary of Housing and Urban Development, according to media reports Tuesday. No official announcement of the appointment has been made, as the Biden team has been leaking cabinet selections to the media in advance of formal announcements a day or so later. Fudge, D-Ohio, had sought to lead the USDA – and even seemed to balk at the idea that she might end up at HUD. She told Politico in November that Black leaders too often are pigeon-holed for only certain cabinet positions, including HUD. As this country becomes more and more diverse, we’re going to have to stop looking at only certain agencies as those that people like me…

ABA Backs Perdue In Georgia Runoff

The American Bankers Association is jumping into the Senate runoff election in Georgia in a big way, dropping an ad thanking Sen. David Perdue for his role in “helping Georgia families and small businesses during the Covid-19 pandemic.” Perdue faces Democrat Jon Ossoff in one of two Georgia runoffs scheduled for Jan. 5 that will determine control of the U.S. Senate. Sen. Kelly Loeffler and Democrat Raphael Warnock face each other in the other runoff. Reuters reported that ABA is spending $1 million on the Perdue’s behalf. ABA called it “part of a voter education campaign.” “Senator Perdue’s strong support for the Paycheck Protection Program allowed small businesses in Georgia and around the country to survive the economic dislocation caused by COVID-19,”…

HFSC Chair Waters Issues Biden Lengthy To-Do List

House Financial Services Committee Chair Maxine Waters issued a lengthy housing to-do list for President-elect Joe Biden. Waters, D-California, sent a 7,056-word letter to Biden urging him to, among other things: Issue an executive order to prevent evictions.Direct the Department of Housing and Urban Development to “implement a uniform, interim recertification rule that requires PHAs and owners to presume that a tenant’s inability to pay rent has been caused by a loss of income, and as a result would be required to conduct an income recertification.”Preserve the GSE Patch for the duration of the pandemic and re-propose a replacement for the GSE Patch when the housing market has stabilizedFire Consumer Financial Protection Bureau Director Kathy Kraninger.Fire United States Interagency Council on Homelessness…

Waters Opposes Calabria’s Fannie, Freddie Goals

Mark Calabria wants to pull Fannie Mae and Freddie Mac from conservatorship by the time President Trump leaves office next month. Not so fast, says Rep. Maxine Waters. The chairwoman of the House Financial Services Committee sent Calabria a letter last week urging him to “fully engage with Congress, halt all efforts to raise the capital requirements for Fannie Mae and Freddie Mac and halt all efforts to release them from conservatorship.” “I believe that it is entirely inappropriate for you and your agency to be focusing on releasing the Enterprises from conservatorship during the pandemic with the assistance of a lame duck Treasury Secretary,” Rep. Waters wrote. “At the very least, the Congress and the American public deserve transparency…

Marzol Retires From FHFA

After 20 months on the job, Federal Housing Finance Agency Principal Deputy Director Adolfo Marzol will retire this month, FHFA announced Friday. Chris Bosland, FHFA’s Senior Advisor for Regulation, will succeed Marzol. “After finalizing the Enterprise’s capital rule, a key milestone on the path to responsibly ending the conservatorships, now is the right time for me to transition back into retirement,” Marzol said.    Bosland joined FHFA in 2019 after serving as deputy chief of staff at the U.S. Department of the Treasury’s Office of the Special Inspector General for the Troubled Asset Relief Program. He previously was an attorney in private practice and has served as an economist at the Federal Reserve Bank of New York and as counsel and…