Liquidity

Ginnie Mae will more closely examine liquidity at all issuers in response to complaints by the HUD inspector general that it would be vulnerable to defaults at nonbanks it does business with.

A slight decline in core deposits in the second quarter stoked worries that tighter liquidity is around the corner. Bankers are exploring responses beyond the typical CD rate special if third-quarter results show the trend is continuing.

The FDIC is watching banks that use wholesale funds to support CRE lending. The warning comes as brokered deposit levels at community banks are at their highest level in nearly six years.