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FHFA proposes to update minimum financial eligibility requirements for GSEs


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“In an ongoing commitment to the safety and soundness of our housing finance system, the enterprises must consider risk exposure from their contractual relationships with seller/servicers and assess, monitor, and take appropriate actions to address the risks to which they are exposed in their business relationships with third parties,” said FHFA acting director Sandra Thompson.

Bob Broeksmit, president and CEO of the Mortgage Bankers Association, said they are especially pleased that the FHFA considered industry comments when drafting the proposal.

“This is a critically important framework to get right given the vital role independent mortgage banks (IMBs) play in serving the needs of LMI and minority borrowers. Given the focus of this administration on expanding homeownership to underserved borrowers, it is important that the capital, liquidity, and net worth standards are properly calibrated to mitigate risk, but not excessive to the point where they will increase costs or reduce access for borrowers,” Broeksmit said.

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