Source: http://housingthink.com/index.php/tag/fhfa/
Timestamp: 2017-06-26 17:23:02
Document Index: 178031979

Matched Legal Cases: ['art 1270', 'art 1270', 'art 1270', 'art 228', 'art 345', 'art 563', 'art 25']

FHFA adopts final rule regarding consolidated obligations
by Ryan Sloan on Apr 4, 2011
The Federal Housing Finance Agency is adopting a final rule that re-organizes and re-adopts regulations regarding consolidated obligations (COs). The rule amends the current regulations, “to reflect statutory amendments made to section 11(c) of the Federal Home Bank Act (Bank Act) with regard to the issuance of COs.”:
The main purpose for this rulemaking is to update Finance Board regulations to reflect amendments made by HERA to section 11 of the Bank Act with regard to Bank authority to issue COs and to combine certain parts of the former Finance Board regulations into new part 1270. 75 FR at 68535. As already discussed, because the Finance Board had previously delegated responsibility to the Banks themselves to issue COs in 2000, the changes made by HERA to section 11 of the Bank Act—or the related regulatory amendments now being adopted—do not alter the current processes or practices for issuing COs. Otherwise, as FHFA noted when it proposed new part 1270, most of the provisions in new part 1270 are being carried over from existing regulations, without substantive change.
FHFA raises minimum capital level
Yesterday, The Federal Housing Finance Agency (FHFA) issued a final rule that raises the minimum capital level required of the entities overseen by the Agency (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks):
For further information contact: Christopher T. Curtis, Senior Deputy General Counsel,Christopher.Curtis@fhfa.gov, (202) 414-8947, or Jamie Schwing, Associate General Counsel, Jamie.Schwing@fhfa.gov, (202) 414-3787, (not toll-free numbers), Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20552. The telephone number for the Telecommunications Device for the Deaf is (800) 877-8339.
FHFA, FHLB
FHFA proposes restricting Fannie and Freddie deals involving private transfer fees
The Federal Housing Finance Agency proposed a rule that would restrict Fannie Mae and Freddie Mac from, “dealings in mortgages encumbered by certain types of private transfer fee covenants and in certain related securities.” The rule stems from the FHFA’s position that transfer fees are harmful to the, “liquidity and stability of the housing finance market, and to financial safety and soundness.” There are, however, some exceptions to the restriction, “fees paid to homeowner associations, condominiums, cooperatives, and certain tax-exempt organizations that use the private transfer fees to provide a direct benefit to the owners of the encumbered real property”.
Commenters on an earlier version of the proposed rule advocated for an exemption of:
transfer fees paid to nonprofit corporations with tax-exempt status under Internal Revenue Code (“Code”) sections 501(c)(3), 501(c)(4) or 528 where the fees are targeted to social welfare purposes, environmental purposes, civic betterment and social improvements or to “sustain the real estate infrastructure.” (76 FR 6704)
FHFA, GSEs
HUD proposes changes to FHA insurance of multifamily mortgages
The proposed rule would revise HUD’s regulations governing the eligibility for FHA insurance of mortgages used for the purchase or refinancing of existing multifamily housing projects. In particular, HUD is seeking to expand eligibility of FHA insurance to include cooperative multifamily projects, a move the Department hopes will increase the availability of financing in a tight capital market:
Given the current crisis in the capital markets and the significant downturn in the multifamily market, the Department has determined that this is an appropriate time to reconsider this regulatory imposed limitation with respect to the mortgage insurance for the refinancing of cooperative projects. As mortgage lenders strive to increase capital reserves and tighten underwriting standards, the availability of financing for multifamily housing has been reduced. (76 FR 5518)
FHFA permits use of Community Development loans as collateral for advances from FHLB
by Ryan Sloan on Dec 9, 2010
Today, The Federal Housing Finance Agency posted notice of a final rule to expand the type of collateral eligible for use by community financial institutions in securing advances from the Federal Home loan Bank for the purposes of community development to include “community development loans”. The final rule defines community development as having:
the same meaning as under the definition set forth in the Community Reinvestment rule for the Federal Reserve System (12 CFR part 228), Federal Deposit Insurance Corporation (12 CFR part 345), the Office of Thrift Supervision (12 CFR part 563e) or the Office of the Comptroller of the Currency (12 CFR part 25), whichever is the CFI member’s primary Federal regulator.
And, defines a community development loan as:
FHFA considered several comments on the proposed definitions, but determined to move forward with the proposed language. In particular, both comments received on the definition of “community development”, called for a the FHFA to expand their definition and to drop the income criteria inherent in the proposed language. FHFA did not agree with the arguments made in the comments on the grounds of legislative history, ” As it noted in proposing this definition, FHFA is relying on this long-standing regulatory history in defining the term.”
Comments were also made to expand the scope of “community development loan”, particularly to include municipal bonds. FHFA declined to expand the scope of their initial language, noting that municipal bonds were inherently included in the definition of “community development loan” in certain cases, but that to include all types of municipal bonds, “would go beyond what is authorized in the Bank Act and would not be consistent with the statutory limitation.”
The one major exception to the final rule’s general consistency with the proposed version, is the FHFA decision to drop a “proposed prohibition on reverse repurchase agreements and similar secured lending transactions with affiliates of members.” The final rule is effective on January 10, 2011
FOR FURTHER INFORMATION CONTACT: Thomas E. Joseph, Senior Attorney Advisor, thomas.joseph@fhfa.gov, (202) 414-3095 (not a toll-free number); Office of General Counsel, Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., Washington, DC 20552; or Julie Paller, Senior Financial Analyst, julie.paller@fhfa.gov, 202-408-2842 (not a toll-free number); Division of Federal Home Loan Bank Regulation, Federal Housing Finance Agency, 1625 Eye Street, NW., Washington, DC 20006. The telephone number for the Telecommunications Device for the Hearing Impaired is (800) 877-8339.
FHFA, FHLB, municipal securities