Follows BDA Capital Building Recommendation
Yesterday, Mark Calabria, Director of the Federal Housing Finance Agency announced the final capital proposal for mortgage giants Fannie and Freddie and the potential dangers they pose to the mortgage market. In a major advocacy win for the BDA, the final rule included the “capital building” a position laid out the BDA’s 2019 GSE White Paper.
The final rule can be viewed here.
The BDA GSE Policy Brief can be viewed here.
Calabria, who has long pushed for more scrutiny of the mortgage market, applauded the announcement calling the provision the most significant achievement of his tenure, Calabra said:
“After considering all the comments on the proposed rule, and the Financial Stability Oversight Council’s review of the secondary mortgage market, FHFA is confident that the final rule puts Fannie Mae and Freddie Mac on a path toward a sound capital footing,”
The BDA will provide updates as they become available.