The controversial proposed capital rule for large banks sets a 75% loss given default rate for GSE debt issued but not guaranteed by the GSEs. For the debt guaranteed by the GSEs, the LGD rate will be 25%.
A new request for information asks stakeholders whether expanding social bonds from multifamily to single-family will help or hurt borrowers and investors.
The Fannie/Freddie regulator indicated it will review the impact of the ERCF on the UMBS market, but for now won’t delay implementation of the new fee.