FHFA Decision on FHLBanks and Captive Insurers Seen as a Blow to Non-QM Funding
January 29, 2016
The Federal Housing Finance Agency’s recent final rule limiting membership in the Federal Home Loan Bank system will reduce funding for originations of non-qualified mortgages and other non-agency activity, according to industry analysts. In recent years, many real estate investment trusts gained access to FHLBank advances via captive insurance companies. A final rule from the FHFA this month closed that so-called loophole, with the regulator claiming that Congress didn’t ...