2023-06-02T14:11:16-04:00June 2nd, 2023|4- GSE Activity Report|

Watch Out

As we detailed earlier this week, the OCC’s new enforcement policy is a paradigm shift in terms of the legal and reputational risk run by national banks and federal thrifts – that is, by the depository institutions that matter the most to mortgage finance.  The most important strategic driver of what these companies do in this sector are the forthcoming end-game capital rules and subsequent changes to stress testing and the broader regulatory-capital regime.  However, these new enforcement standards matter, as this report makes clear.