Page 38 - July-August 2018 GSE Report Flip Book

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are mispriced, locked out and discouraged from pursuing homeownership. We look forward to continue working with the FHFA and the Enterprises to implement more modern, precise and inclusive scoring models consumers deserve.”
“It is unfortunate there’s been a delay to the review process,” said Joanne Gaskin, FICO senior director of scores and analytics. “We continue to support a competitive review of credit scoring and plan to actively participate in the new FHFA credit score application process, to ensure that lenders, consumers and taxpayers benefit from the independence, reliability and innovation that the FICO Score provides.” (HousingWire, Kelsey Ramirez, 07/23/18; HousingWire, Kelsey Ramirez, 07/24/18)
FHFA extends the comment period for the proposed GSE capital rule
In June, the Federal Housing Finance Agency proposed new capital requirements for Fannie Mae and Freddie Mac post-conservatorship and asked that public comments be submitted by September 17. 2018. The proposed rule is available here.
FHFA has now extended the comment period deadline to November 16, 2018. (HousingWire, Kelsey Ramirez, 08/06/18)
FHFA proposes changes to its golden parachute rule to reduce compliance burdens
On August 28, the Federal Housing Finance Agency proposed a new rule to amend its golden parachute rule in an effort to reduce compliance burdens. Under the Federal Housing Enterprises Financial Safety and Soundness Act, FHFA has broad discretionary authority to prohibit or limit golden parachute payments made by a regulated entity. FHFA argues that parts of the existing regulation governing these payments is too broad and cumbersome, writing:
The current rule requires FHFA review and consent before a regulated
entity or the Office of Finance enters into an agreement to make, or makes, a payment that is contingent on the termination of an affiliated party, if the regulated entity is in a troubled condition, in conservatorship or receivership, or insolvent. FHFA’s experience implementing the rule indicates that the rule requires review of some agreements and payments where there is little risk of excess or abuse, and thus that it is too broad.
FHFA proposed regulation focuses on types of agreements and payments that are of greater regulatory concern, including those to executive officer, broad-based plans covering large numbers of employees such as severance agreements and payments to non-executive officer employees, who engaged in wrongdoing. FHFA’s proposal should reduce administrative and
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