Member Login

Remove GSE product restrictions: ICBA, minority bank council

ICBA and its Minority Bank Advisory Council this week urged the Treasury Department and Federal Housing Finance Agency to reopen negotiations over the Preferred Stock Purchase Agreements for Fannie Mae and Freddie Mac.

Amendments: The changes would:

Limit Fannie and Freddie purchases of single-family loans with at least two “high-risk” characteristics.
Limit the percentage of investor properties and second homes to 7% of total purchases.

Impact: In a joint letter, the groups said the restrictions will:

Harm low- and moderate-income and minority borrowers.
Undermine closing the homeownership gap among borrowers of color.
Constrain Minority Depository Institutions and smaller lenders.
Counter Fannie and Freddie’s affordable housing obligations.

Recommendations: The groups urged the agencies to:

Delay implementation of the agreements’ product and program restrictions and restart negotiations to remove them.
Clarify how the restrictions will be tracked and enforced at the lender level.

Previous News

ICBA updates data privacy guide
ICBA this week released an updated guide for community banks on data privacy laws and regulations. The guide is available here and in the Cyber and Data Security Mitigation section of ICBA’s Operational Risk resource center.
Image
May 28, 2021
CFPB: Manufactured housing borrowers have higher interest rates
Roughly 42 percent of loans for manufactured homes are secured by “chattel” loans secured by the home but not the land, according to a report from CFPB.
Image
May 28, 2021
ICBA, Minority Bank Council: Housing Finance Amendments Hurt Low-Income, Minority Borrowers
ICBA and its Minority Bank Advisory Council urged the Treasury Department and Federal Housing Finance Agency to reopen negotiations over amendments to the Preferred Stock Purchase Agreements for Fannie Mae and Freddie Mac that would limit purchases of certain types of loans.
Image
May 27, 2021

Related News Taxonomy