Industry Briefs: FHFA Requests Input on GSEs’ Single-Family Pricing Framework
The Federal Housing Finance Agency issued a Request for Input on Fannie Mae and Freddie Mac’s single-family pricing framework. The RFI solicits public feedback on goals and policy priorities that FHFA should pursue in its oversight of the pricing framework.
FHFA also seeks input on the process for setting the Enterprises’ single-family upfront guarantee fees, including whether it is appropriate to continue to link upfront guarantee fees to the Enterprise Regulatory Capital Framework, which was established in 2020, and has a significant impact on the risk-based pricing component of the Enterprises’ guarantee fees.
FHFA invites interested parties to provide written input, feedback, and information on all aspects of this RFI by August 14. The RFI can be found here.
Fitch Ratings Publishes Commercial Mortgage Servicer Handbook
Fitch Ratings New York, published its Commercial Mortgage Servicer Handbook, with profiles of its 43 rated commercial mortgage servicers across North America.
Fitch’s coverage includes 26 primary, 11 master and 35 special servicers. Recent additions include ACORE Capital, LP (CPS3, CSS3+), Essex Financial Services LLC (CPS3+), and K-Star Asset Management LLC (CSS3). Fitch assigns four types of ratings for commercial mortgage servicers: primary, master, special and loan-level special servicer. Fitch’s commercial mortgage servicer ratings apply to all aspects of commercial real estate (CRE) servicing for all property and loan types. Commercial mortgage servicer ratings are typically requested by servicers that manage loans on behalf of securitized transactions, third-party providers, balance sheet loans or government-sponsored enterprises such as Freddie Mac and Fannie Mae in the U.S. or the Canadian Mortgage Housing Corporation in Canada.
CFPB Issues Guidance to Rein in Creation of Fake Accounts to Harvest Fees
The Consumer Financial Protection Bureau issued a circular affirming that a bank may violate federal law if it unilaterally reopens a deposit account to process transactions after a consumer has already closed it.
The CFPB said it has observed in complaints that even after a consumer completes all the required steps to close an account, their bank has “reopened” the closed account and assessed overdraft and nonsufficient funds fees. Consumers have reported to the CFPB that financial institutions have also charged account maintenance fees upon reopening, even if the consumer was not required to pay account maintenance fees prior to account closure.
“When a bank unilaterally chooses to open an account in someone’s name after they have already closed it, this is a fake account,” said CFPB Director Rohit Chopra. “The CFPB is acting on all fronts to halt the harvesting of illegal junk fees.”
The circular confirms that banks may risk violating the Consumer Financial Protection Act’s prohibition on unfair acts or practices by unilaterally reopening closed accounts. Consumers may incur overdraft, non-sufficient funds, or monthly maintenance fees when a closed account is reopened by the bank. This practice may also enable third parties to access a consumer’s funds without consent. If reopening the account overdraws the account, banks may also furnish negative information to consumer reporting companies if consumers do not settle negative balances quickly. Consumers often cannot reasonably avoid the risk of substantial injury caused by this practice because they cannot control a third party’s attempt to debit or deposit money, the process and timing of account closure, or the terms of deposit account agreements.
Ginnie Mae MBS Portfolio Grows to $2.37 Trillion
Ginnie Mae, Washington, D.C., reported its mortgage-backed securities portfolio outstanding grew to $2.373 trillion at the end of the first quarter, an increase of $80 billion, with gross issuance ranging within $24-28 billion each month.
First quarter new MBS issuance supported financing of more than 281,000 households, including more than 126,000 first-time homebuyers. Mortgage loans pooled into Ginnie Mae MBS included more than 45,000 households who avoided foreclosure.
Q1 2023 issuance includes $77.15 billion of Ginnie Mae II MBS and $3.50 billion of Ginnie Mae I MBS, including $3.13 billion in loans for multifamily housing. Nearly 30% of these multifamily MBS properties had Green or Green/Affordable designations from FHA’s lending program.
