Three key Republicans on the Senate Banking Committee have introduced a GSE bill that they hope will serve as the model for legislation to tighten the regulation of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks.Co-sponsored by Sens. Chuck Hagel (Neb.), John Sununu (N.H.), and Elizabeth Dole (N.C.), the bill (S. 190) would create a new regulator for the three government-sponsored enterprises with the power to raise capital requirements, disapprove new products, and place a failing GSE in receivership. The bill contains the essential elements of GSE regulatory reform that the Bush administration demanded last year. The three senators introduced a similar GSE bill last year. But this year they added new requirements for annual audits of Fannie's and Freddie's affordable housing programs, limits on investments in nonmission assets (such as tobacco bonds), and mandatory reporting of fraudulent loans. S. 190 would also allow the GSE regulator to establish parameters for primary and secondary activities, which the Mortgage Bankers Association supports. "The legislation draws a needed bright line between primary and secondary markets, which will empower the regulator to keep Fannie and Freddie focused on their mission," said MBA's top lobbyist, Kurt Pfotenhauer.
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There's temporary leeway on formal compliance with replacement-cost value requirements in order to sort out insurer concerns with a recent re-emphasis on them.
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Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
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Test your knowledge of the biggest mortgage headlines of the week. No. 2 pencil not required!
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The agreements at the heart of the hearing did not cover the one reached with the National Association of Realtors or those people that only bought homes.
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Feds say Chicago businessman Mark Steven Diamond defrauded at least 80 victims and caused at least $6 million in losses.
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