Senate Banking Committee Chairman Richard Shelby, R-Ala., says he would like to increase competition in the secondary mortgage market by allowing the Federal Home Loan Banks to issue mortgage-backed securities.However, he cautioned that it needs to be done "very carefully" and under the purview of a world-class regulator to avoid the recent problems that have cropped up at the Seattle Federal Home Loan Bank. Sen. Shelby, who is working on regulatory reform legislation involving the housing government-sponsored enterprises, made his remarks to reporters after a hearing on FHLBank issues. The Seattle FHLBank recently announced that it is exiting the mortgage purchase business because of losses on its mortgage portfolio. George Engelke Jr., chairman of the New York Federal Home Loan Bank, called the Seattle FHLBank situation "a little scary." He told the Senate Banking Committee that the interest rate problems at the Seattle FHLBank must have been going on for quite awhile before the regulator stepped in. "This bank got killed," he testified. Mr. Engelke urged the committee not to authorize a securitization program for the FHLBanks.
-
A federal judge in Texas dismissed the Consumer Financial Protection Bureau's medical debt rule and prohibited states from passing their own laws prohibiting medical debt on credit reports.
6h ago -
Dr. Mark Calabria takes on the additional role of chief statistician of the United States; retired Ally Bank executive Diane Morais has joined First Citizens Bancshares' board of directors; MainStreet Bank has promoted Alex Vari to chief financial officer; and more in this week's banking news roundup.
9h ago -
While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
11h ago -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
11h ago -
Rising home prices and softening sales offer a mixed view of a market that some say is shifting to favor buyers.
July 11 -
The notes are backed by home improvement installment loans originated by approved dealers in Foundation Finance Company's network.
July 11