10 02, 2022


2023-04-05T09:59:53-04:00February 10th, 2022|4- GSE Activity Report|

The Way to Equitable AI

Moving far ahead of the banking agencies AI, FHFA today released a series of supervisory AI/ML standards for Fannie, Freddie, and CSS, perhaps leaving the FHLBs alone because none so far does much within this arena or nobody cared.  Reflecting the agency’s new equality and equity mission GSE, the AI/ML standards focus not only on risk management, but also ethical deployment in ways sure to set complex new AI/ML entry hurdles for the GSEs.  If they surpass them, then a new U.S. AI/ML construct will result; if not, Fannie and Freddie could fall behind this all-important efficiency curve.


17 11, 2021


2023-05-26T10:49:00-04:00November 17th, 2021|4- GSE Activity Report|

Score One for Sandra

FHFA’s new scoring system for the GSEs and CSS is a startling, if unsurprising, mission rewrite.  Although Obama and even Trump FHFA directors acknowledged the GSEs’ affordable housing mission, they also emphasized market liquidity and credit availability.  These goals are noted again, but the agency’s prioritization has turned the metrics upside-down, not only heightening the importance of equitable finance to further Director Thompson’s new framework, but also making still more CRT an even greater priority than the pending capital rewrite would have it.


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