#ARM

23 05, 2023

DAILY052323

2023-05-23T17:15:40-04:00May 23rd, 2023|2- Daily Briefing|

House Advances Consensus Anti-China Reporting Legislation

The House yesterday voted 400-5 to approve H.R. 1156, bipartisan legislation addressing Congress’ China concerns by mandating a new study.

Gruenberg Endorses Bank On Accounts, Notes Continuing Racial Gaps

In remarks today largely devoid of policy implications, Chairman Gruenberg praised Bank On’s impact on financial inclusion, but noted that racial divides still persist as Black and Hispanic households are more likely to be unbanked than White ones at every income level.

IOSCO Aims at Ending Crypto-Market Arbitrage

Advancing global crypto standards, the International Organization of Securities Commissions today released a consultative report on the contentious question of centralized-market regulation with which a joint HFSC/AG Committee process is now wrestling (see Client Report CRYPTO43).

HFSC GOP Blasts GSE Fees, Supports FHLB System

Today’s HFSC hearing with FHFA Director Thompson was largely the LLPA battle we anticipated, with Republicans lambasting recent actions and Democrats tartly responding that Republicans did not know what they were talking about.

Hsu Echoes Gruenberg’s Bank-On Praises

Following Chairman Gruenberg’s remarks earlier today, Acting Comptroller Hsu similarly praised Bank On’s impact on financial inclusion while highlighting racial and income gaps.

Daily052323.pdf

17 05, 2023

DAILY051723

2023-05-17T17:44:04-04:00May 17th, 2023|2- Daily Briefing|

Bipartisan Senate Consensus Demands Structural Change To Fed IG

At today’s Senate Banking Subcommittee on Economic Policy hearing on Fed accountability, Chairwoman Warren (D-MA) was unsparing in her criticism of the Fed and its current IG, Mark Bialek.  She elicited the fact that he is the Fed’s highest-paid employee and, while he may be dismissed only by two-thirds of the Board, she argued that he is essentially captive and thus cannot be relied upon to investigate ethics challenges, bank failures, and internal operations.

HFSC GOP Demands LLPA Changes No Matter FHFA’s RFI

As anticipated, Chairman Davidson (D-OH) reiterated GOP demands that the FHFA rescind the entirety of its LLPA proposal at today’s HFSC Subcommittee on Housing and Insurance hearing, despite FHFA conceding to some Republican demands and issuing an RFI on the Enterprises’ single-family pricing framework earlier this week.  Mr. Davidson also pushed back on FHFA’s assertion that LLPA pricing must be set with regard to private mortgage insurance, saying that MI does not reduce taxpayer risk or GSE capital even though it is required for risk reduction and captured in the GSE capital standards.

Daily051723.pdf

14 04, 2023

DAILY041423

2023-04-14T16:36:06-04:00April 14th, 2023|2- Daily Briefing|

Waller Defends Fed SVB Policy

FRB Gov. Waller today defended recent Fed actions, reiterating that SVB was an idiosyncratic risk but it also posed systemic run risk, the most fundamental threat to financial stability.

FHFA Opens the Suggestion Box

FHFA today sought views on its corpus of GSE regulation.

FRB-NY Proposes Novel Way To Prevent Bank Runs

A  new post from FRB-NY staff adapts the minimum-balance-at-risk (MBR) policy long discussed for MMFs (see FSM Report MMF16) to bank deposits to determine the extent to which it would quell uninsured-deposit runs.

CFPB Announces Revisions To APOR Methodology

The CFPB today announced a revised version of its Methodology for Determining Average Prime Offer Rates (APOR).

Bowman Rejects Calls For New Rules

In remarks today, FRB Gov. Bowman again differed from Vice Chairman Barr, emphasizing that recent failures are likely not an “indictment” of current rules and that judgment should await the Fed’s report and those from others.

Daily041423.pdf

21 12, 2021

Daily122121

2023-05-22T13:54:21-04:00December 21st, 2021|2- Daily Briefing|

FHFA: Upfront G-Fee Decrease Leads Overall Decline
As required by law, FHFA today reported on Enterprise single-family g-fees in 2020, finding that these fell an average of 2bps points across all loan products compared to 2019.

CFPB Exercises All Its Might in New Enforcement Action
Continuing to strengthen its enforcement posture under Director Chopra, the CFPB today announced it is entering an order against LendUp Loans due to discriminatory lending and other illegal practices that will effectively shutter the company.

Daily122121.pdf

9 12, 2021

FedFin: Super-Special

2023-05-23T12:54:23-04:00December 9th, 2021|The Vault|

On Tuesday, HUD and the CFPB opened the door to special-purpose mortgage finance.  Now, we expect FHFA to use this safe harbor to mandate express GSE equitable-finance programs and for banks to take much of what’s left in all their commitments after George Floyd’s murder and turn it into mortgage and other community-finance products.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.…

9 12, 2021

FedFin: Super-Special

2023-05-23T12:54:16-04:00December 9th, 2021|The Vault|

On Tuesday, HUD and the CFPB opened the door to special-purpose mortgage finance.  Now, we expect FHFA to use this safe harbor to mandate express GSE equitable-finance programs and for banks to take much of what’s left in all their commitments after George Floyd’s murder and turn it into mortgage and other community-finance products.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.…

2 12, 2021

FedFin: Going Down?

2023-05-23T13:59:59-04:00December 2nd, 2021|The Vault|

Two recent studies add fuel to the fire we first spotted late last year: demands for ARMs that only go down.  Director Thompson’s latest scorecard combines with her equitable-finance mission to make this option a top political priority even if its market feasibility remains at best uncertain.

The full report is available to subscription clients. To find out how you can sign up for the service, click here.…

20 10, 2021

Daily102021

2023-06-05T15:29:28-04:00October 20th, 2021|2- Daily Briefing|

Senate Dems Demand Facebook End Crypto Projects
Five Senate Democrats including Banking Chairman Brown (D-OH) late yesterday demanded that Facebook terminate its cryptocurrency (Diem) and digital wallet (Novi) projects, citing CEO Mark Zuckerberg’s 2019 HFSC testimony (see Client Report CRYPTO12) pledging not to launch financial products such as these without U.S. regulatory approval.

Banking Agencies, CFPB Do What They Can to Accelerate LIBOR Transition
Today, the Federal banking agencies and the CFPB, NCUA, and state regulators issued guidance yet again emphasizing their LIBOR transition expectations. This follows an OCC self-assessment tool to gauge transition readiness earlier this week and emphatic statements from the other agencies.

Daily102021.pdf

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