Although FHFA’s minor adjustments to the GSEs’ g-fees will modestly affect specific mortgage classes, the key to Friday’s decision is the way FHFA has now decided to measure risk.  Adopting the GSEs’ longstanding and preferred model, FHFA determined that g-fees could stay about as is based on pricing data.  In sharp contrast, bank regulators let companies price any way they want (more or less), but demand capital, liquidity and other prudential buffers for risk insulation.

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