#Urban Institute

17 05, 2023


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.


1 07, 2022


2023-01-24T15:51:09-05:00July 1st, 2022|4- GSE Activity Report|

Plan B for UMBS?

FHFA today essentially conceded after its initial polite rebuff to an Urban Institute critique of the capital rules adverse impact on UMBS.  In a statement, the agency now says that continuing consultation with stakeholders persuades it that something must be done to protect the single security.  Although the GSEs will for now continue to charge their add-on guarantee fee, FHFA pledges a “near-term” review of the capital rule’s requirements, emphasizing its continuing commitment to listen to concerns.  In short, stand by for a bit of a capital rewrite unless FHFA comes up with Plan B.  We can’t think of what this might be other than a capital fix since the problem here is market perception, not GSE behavior, but FHFA is committed to its capital rule and will try something else if it can think of something else.


23 06, 2022


2023-01-25T15:52:27-05:00June 23rd, 2022|4- GSE Activity Report|

No Oops re UMBS

Following a sharp critique of GSE capital standards earlier today from the Urban Institute, FHFA Director Thompson today acknowledged Fannie and Freddie’s new 50 bps fees when one of the GSEs guarantees the other’s collateral for UMBS purposes.  The Urban Institute paper argued that these fees properly reflect the capital cost of the rules’ weightings related to these cross-guarantees, going on to say that the fees are likely over time to reduce investor appetite for Freddie Mac securities and thus undermine the UMBS construct and its broader benefits.


7 03, 2022


2023-04-04T12:26:31-04:00March 7th, 2022|4- GSE Activity Report|

Banks Take Blame

A new Urban Institute study suggests that banks are more likely to discriminate when it comes to minority borrowers, heightening concerns at a time with increased political risk related to racial equity and mortgage finance.


Go to Top