Climate Risk

31 01, 2024

FedFin on: Steady As They Go Scores

2024-01-31T11:13:57-05:00January 31st, 2024|The Vault|

We have reviewed the 2024 scorecards FHFA released for Fannie and Freddie.  Unlike prior years, it contains no new initiatives or aspirations, largely holding Fannie and Freddie to account for much of what they’ve been asked to do before.  Fannie is given indirect encouragement to continue its title-insurance plans, but that’s only if it comports with added cost-efficiency under several longstanding FHFA goals….

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31 01, 2024

GSE-013124

2024-01-31T11:13:49-05:00January 31st, 2024|4- GSE Activity Report|

Steady As They Go Scores

We have reviewed the 2024 scorecards FHFA released for Fannie and Freddie.  Unlike prior years, it contains no new initiatives or aspirations, largely holding Fannie and Freddie to account for much of what they’ve been asked to do before.  Fannie is given indirect encouragement to continue its title-insurance plans, but that’s only if it comports with added cost-efficiency under several longstanding FHFA goals.  The directive regarding property insurance is only somewhat less elliptical, scoring the GSEs on the extent to which they develop property-insurance options that “mitigate risk while furthering sustainable homeownership” – whatever that may come to mean.  Climate risk comes in for mention among goals telling the GSEs to “enhance” consumer understanding of climate risk and do their best to avoid it on their own via monitory and analysis that identify at-risk borrowers and “informs” policy.  And, of course, the GSEs are to be safe and sound, transferring credit risk in large amounts to the greatest extent possible.

GSE-013124.pdf

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25 10, 2023

Daily102523

2023-10-25T16:58:50-04:00October 25th, 2023|2- Daily Briefing|

Divided Fed Advances Climate-Risk Principles

Following the FDIC’s 3-2 vote yesterday to approve final inter-agency climate-risk standards, the FRB late yesterday afternoon released its 5-2 decision to do the same.  Chair Powell emphasized as he has frequently before Congress that the guidance focuses only on climate financial risk and is thus fully consistent with the Board’s mandate, a reading of the principles also endorsed by Vice Chair Barr as he described its “narrow” construct.

CFPB Report Seeks to Validate Late-Fee Restrictions

Adding ammunition to the CFPB’s pending late-fee restrictions (see FSM Report CREDITCARD36), the Bureau’s biennial consumer credit card market report today finds that credit card companies in 2022  were significantly more profitable compared to pre-pandemic levels and charged consumers $130 billion in interest and fees.

Sharp Interchange-Fee Reduction Out for Comment

The FRB today voted 6-1 to approve a proposal mandating an approximate thirty percent reduction in debit-card interchange fees from the current cap (see FSM Report INTERCHANGE7).  As under current laws and required by the Dodd-Frank Durbin Amendment (see FSM Report CONSUMER14), the new approach would only apply to issuers with over $10 billion in assets.

Senate Banking GOP Raises New CCP Finance Concerns

As the Administration meets with Chinese financial authorities to hammer out ongoing concerns, all Senate Banking Republicans led by Ranking Member Scott (R-SC) today sent a letter to Treasury Secretary Yellen USTR Head Tai raising concerns that the CCP’s expansion into U.S. and global payments markets …

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