FHFA’s proposed revisions to the enterprise regulatory capital framework prompted feedback from Fannie Mae and Freddie Mac. The GSEs support various aspects of the proposal while seeking some changes.
The rescinded fee would have added $1,250 in cost to the purchase of a $300,000 home. Or, borrowers could have elected to pay an extra $24.75 per month on their mortgage.
The ranking member of the Senate Banking Committee has demanded that the FHFA director meet with committee staff to prove the GSEs’ new pricing grids don’t amount to more cross-subsidy.
Fannie and Freddie modified their policies to support lower-income borrowers by allowing greater use of downpayment assistance and equity-sharing programs.
FHFA has asserted that most of the changes to the GSEs’ loan-level pricing adjustment grids are risk based or meant to meet the GSEs’ capital requirements.
The chair of the Senate Banking Committee wants FHFA to examine the implications of the Federal Home Loan Banks becoming the lender of last resort for struggling financial institutions.