Despite the newly signed debt ceiling deal passed in the nick of time this week by Congress and signed by President Obama, Fannie Mae, Freddie Mac and the Federal Home Loan Banks remain at risk of having their AAA ratings downgraded if the government fails in the future to keep its fiscal house in order, according to Moody’s Investors Service.Moody’s confirmed the AAA government bond rating of the U.S. following the raising of the statutory debt limit on Aug. 2, but the credit rating agency assigned a “negative” rating outlook to Uncle Sam.

Hedging will become much more expensive for Fannie Mae, Freddie Mac and the Federal Home Loan Banks than for anyone else as proposed new rules on the margining of uncleared derivatives will significantly increase the cost of trading, the GSEs warned federal regulators.GSEs regulated by the Federal Housing Finance Agency weighed in via comment letters on the rules proposed in April by the FHFA, as well as the Federal Reserve, the Farm Credit Administration, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency.

A coalition of six Federal Home Loan Banks has gone to court seeking formal standing as investors in the proposed $8.5 billion Bank of America settlement over mortgage-backed securities even as court papers reveal investors could be owed a sum three times greater than the current BofA proposal.The Federal Home Loan Banks of Boston, Chicago, Indianapolis, Pittsburgh, San Francisco and Seattle together own certificates in 73 of the trusts that are part of the proposed settlement for which they paid more than $8.8 billion.

The Federal Home Loan Bank of Chicago recently announced that the nonprofit lender and real estate consultant IFF has joined the Bank as a member.Formerly known as the Illinois Facilities Fund, IFF is the first community development financial institution to join the FHLBank of Chicago and only the sixth CDFI nationally to become part of the FHLBank system.

The Federal Housing Finance Agency is seeking comments on a long-awaited, recently-proposed rule to establish prudential standards relating to the management and operations of Fannie Mae, Freddie Mac and the Federal Home Loan Banks.The Housing and Economic Recovery Act of 2008 requires the FHFA director to establish standards that address 10 separate areas relating to the management and operation of the GSEs and FHLBanks and authorizes the director to establish the standards by regulation or by guideline.

Months after public commenters noted their opposition to proposed changes to the membership criteria of the 12 Federal Home Loan Banks, the Banks’ regulator, the Federal Housing Finance Agency, is still weighing its options going forward.At the end of December 2010, the FHFA released an advanced notice of public rulemaking indicating it was reviewing its regulations governing Bank membership to ensure there’s enough of a connection between Bank membership and the mission of the FHLBanks.

The Federal Home Loan Bank of Pittsburgh recently appointed Kristina Williams its new chief operating officer. Williams assumes the position in addition to her role as chief financial officer.

While overall governance of the 12 Federal Home Loan Banks passed muster in 2010, the Federal Housing Finance Agency’s annual examination identified a number of “shortcomings” that should be addressed during the coming year.“In 2010, FHFA has a concern about the level of experience and expertise of certain executives and executive turnover at some FHLBanks,” said the FHFA’s annual report to Congress. “While board and management oversight generally improved during 2010 at most FHLBanks, there remains room for improvement at some FHLBanks.”

Non-agency mortgage-backed securities continue to affect the financial performance of several Federal Home Loan Banks, according to the Federal Housing Finance Agency’s annual report to Congress.In aggregate, the FHLBanks hold 1,622 non-agency MBS with a par value of $46.9 billion. Although all of the non-agency MBS had triple-A ratings when purchased, the portfolios are generally of poor quality credit, said the FHFA.

Federal Roundup Federal Reserve Board TILA/HOEPA fee-based triggers. The total points and fees payable by borrowers utilizing certain closed-end home mortgages at or before closing that trigger additional disclosure requirements under the Truth in Lending Act and the Home Ownership and Equity Protection Act have been raised to $611 or 8 percent of the total loan amount, the Federal Reserve Board announced in the June 20, 2011, Federal Register. The effective date is Jan. 1, 2012... MORE