CHLA, allied Lender groups urge speedy fhfa action on gse capital rule

The Community Home Lenders Association (CHLA), joined by three other financial services trade groups, is urging the Federal Housing Finance Agency (FHFA) to move swiftly to implement new capital rules for Fannie Mae and Freddie Mac to avoid “unnecessary and costly delays” that could negatively impact taxpayers, mortgage markets and lenders.

In a letter to FHFA Director Mark Calabria, the lender associations acknowledged the need to reconsider some aspects of the previously proposed capital rules “but we are concerned that re-proposing the entire capital rule imperils both FHFA’s and the Administration’s publicly stated goals of executing Congress’ clear intent in the HERA statute in a timely manner.” In addition to CHLA, the letter was signed by the Independent Community Bankers of America, Community Mortgage Lenders of America and Leading Builders of America.

The groups added, “Additionally, if the regulatory capital rule is not final before late May or early June of next year, the consequences of further delay or inaction become particularly acute.  Under the Congressional Review Act, the regulatory capital rule – or any rule enacted within the prior 60 legislative days by FHFA – can be overturned if there is a change in leadership in Congress and the White House after the 2020 elections.”