The congressional stalemate over housing finance reform has left looming questions about the scope and enforcement of other bank regulations already in the pipeline.

The fate of Fannie Mae and Freddie Mac is comingled with various other regulatory provisions stemming from the crisis. Most notably, the Consumer Financial Protection Bureau's underwriting overhaul—known as the qualified mortgage rule—and the separate pending risk retention requirement for securitizers both allow government-sponsored enterprise-backed loans substantial flexibility while Fannie and Freddie are still in conservatorship. How long they stay open also affects how long banks can use GSE-issued securities to comply with new capital and liquidity rules.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

14-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry