A new GSE regulator could establish annual limits on the size and growth of Fannie Mae's and Freddie Mac's giant portfolios through a rulemaking process, according to James Lockhart, director of the Office of Federal Housing Enterprise Oversight.The OFHEO director told the National Economists Club that the $700 billion mortgage portfolios are too large and should be reduced gradually to a level the regulator determines is appropriate after weighing safety-and-soundness and systemic risk concerns. "If done properly, the reduction of the portfolios would be through a transparent rulemaking process," he said. And after a gradual reduction, the government-sponsored enterprises could "grow with the market," he added. The process Mr. Lockhart outlined reflects a proposal floated by Treasury Department officials to break a deadlock in the Senate over the issue of portfolio limits. No agreement on a GSE regulatory reform bill has been reached yet. "I believe the two sides are not very far apart at all," the OFHEO director said.
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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.
July 11 -
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.
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While refinances are behind the latest increases, the pace of purchase activity may be a stronger indicator of where the housing market sits.
July 11 -
The share of economists expecting a September rate reduction grew in the July Wolters Kluwer survey, but the October or later percentage also increased.
July 11 -
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