The Federal Home Loan Bank of San Francisco has received a regulatory waiver to start making grants of up to $25,000 to help low- and moderate-income homeowners refinance out of nontraditional and subprime mortgages and into a fixed-rate 30-year mortgage. FHLBank member banks and thrifts have to put up $2 for every $1 in grant money to participate in the new affordable housing pilot program. The $2 match is to ensure that members take a loss when the principal amount of an underwater mortgage is written down to meet a 97% loan-to-value ratio requirement for the new mortgage. In approving the grant program, Federal Housing Finance Board members stressed that they want the pilot program to provide sustainable mortgages for the borrowers who cannot afford the resets on their current adjustable mortgages. And they don't want the program used to "bail out" lenders that made bad loans. Other FHLBanks are expected to seek similar waivers, and the Finance Board plans to issue an interim rule for public comment.
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According to the Federal Reserve Board's latest financial stability report, persistent inflation and policy uncertainty are the primary worries for banks. Survey respondents expressed heightened anxiety over murky policy outlooks due to geopolitical turmoil and rapidly approaching domestic elections.
7h ago -
Leaders of ORNL Federal Credit Union are piloting Zest AI's new artificial intelligence-powered assistant to ensure equitable underwriting practices and measure performance against similar institutions.
9h ago -
McCargo stabilized the agency at a crucial time as she helped navigate it through both a pandemic and subsequent dramatic interest-rate cycle change.
10h ago -
The quasi-public entity's plan to buy certain closed-end seconds would constitute "unnecessary government encroachment," the Structured Finance Association said.
April 19 -
The mortgage subsidiary of Hilltop Holdings posted another quarterly loss and volume slipped, but management also sees signs of optimism.
April 19 -
The increasing frequency and severity of droughts was top of mind for panelists at AmeriCatalyst's "Going to Extremes" conference Thursday.
April 18