Refi Redux
Setting Senate Banking’s agenda yesterday, incoming Chairman Brown highlighted refi inequality as a top committee priority.  We forecast this, and so it is, posing a significant administrative, legal, and even statutory challenge to risk-based pricing and the other underwriting metrics so important to the GSEs and mortgage originators.  Sen. Brown’s inquiry will also spotlight inequities in current risk-based capital requirements that could reopen the U.S. rules and even to Fed monetary policy, but LLPAs are first to face the scaffold.