Calabria: FHFA leveling housing-finance playing field

Federal Housing Finance Agency Director Mark Calabria said his agency is working to ensure community banks and other small lenders have a level playing field to access Fannie Mae and Freddie Mac.

Calabria has said he supports eliminating the “patch” exempting Fannie and Freddie mortgage loans from parts of the bureau’s Qualified Mortgage rule and is working with the Consumer Financial Protection Bureau to transition away from the patch without disrupting the mortgage market.

ICBA opposes CFPB plans to revise its QM definition away from debt-to-income ratios in favor of an approach based on pricing, which would primarily benefit larger mortgage lenders. In a joint letter this week and in a September comment letter, ICBA said the DTI ratio requirement enables prudent underwriting and supports low-income and minority borrowers.