The agency has "touched a nerve" on a plan to institute new membership requirements for the Federal Home Loan banks.
At a hearing Tuesday, GOP lawmakers hammered FHFA Director Mel Watt for four hours over his recent decisions to allow Fannie Mae and Freddie Mac to buy loans with lower downpayments and provide money to two affordable housing trust funds.
Justice Antonin Scalia said the case against disparate impact "would be stronger if there had been no court of appeals that had favored" the legal theory.
Hearing arguments in Texas case, Justice Scalia and others were skeptical that the controversial legal theory used in fair housing cases should be invalidated.

Department of Housing and Urban Development Secretary Julian Castro will address his agency's housing initiatives and answer consumers' questions submitted from a live audience and via social media on Jan. 21.

The FHFA's plan "could lead to community banks unnecessarily losing a stable and critical source of funding through termination of their FHLB membership," said John Ryan, head of a group of state regulators.
A federal agency's plan to tighten membership rules for Federal Home Loan banks would hurt community banks and credit unions — and could endanger the financial system, according to a broad array of stakeholders, including state regulators, lawmakers and institutions.

"Don't buy something you can't afford," Obama said, touting new FHA premium cuts made by HUD Secretary Julian Castro while simultaneously warning borrowers.
Housing and Urban Development Secretary Julian Castro moved swiftly on Thursday to defend pending cuts to the Federal Housing Administration's premiums, rebutting GOP arguments they are premature.

With Republicans now controlling both chambers of Congress and signals from Democrats that they are open to alterations, revisions to Dodd-Frank are at the top of the agenda in addition to other subjects, like terrorism insurance and housing finance reform.
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