FHFA releases final GSE capital rule, including NAFCU-sought CRT concessions
The Federal Housing Finance Agency (FHFA) Wednesday finalized its re-proposed rule to establish capital requirements for the government-sponsored enterprises (GSEs). The release of the rule marks an additional step toward removing the GSEs – Fannie Mae and Freddie Mac – from conservatorship.
“Director Calabria and the FHFA’s commitment to building a robust regulatory capital framework for the GSEs is an essential part of reforming our nation’s housing finance system,” said NAFCU Director of Regulatory Affairs Ann Kossachev. “But this is just one step in comprehensive housing finance reform.
"NAFCU looks forward to working with Congress, the Administration, and the FHFA as credit unions play an important role in this space," Kossachev added.
NAFCU has been generally supportive of the FHFA's efforts to allow the GSEs to rebuild capital but continues to advocate that certain safeguards should be codified by Congress before removing the GSEs from conservatorship.
As finalized, the rule offers NAFCU-sought concessions concerning credit risk transfers (CRTs) that intend to "increase the capital relief afforded an Enterprise for well-structured CRT on many common mortgage exposures, and generally to provide increased risk sensitivity in the CRT framework, potentially increasing incentives for the Enterprises to engage in CRT.”
NAFCU had previously urged the agency to "adopt a realistic capital framework for the GSEs to begin moving toward exiting conservatorship." Before finalizing the rule, the agency hosted listening sessions on the topic where NAFCU reiterated its concerns with the rule as proposed.
Senior members of NAFCU's government affairs team are set to meet with FHFA Director Mark Calabria this Friday to discuss a number of issues related to housing finance reform, including the final capital rule.
Stay tuned for updates via NAFCU Today.
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Add to Calendar 2021-02-25 14:00:00 2021-02-25 14:00:00 Fundamentals of Credit Union Subordinated Debt This webinar will cover NCUA’s new rule authorizing the issuance of subordinated debt by natural person credit unions for purposes of regulatory capital treatment. Previously only low-income credit unions could issue subordinated debt that can count toward their net worth requirement. Under the rule, complex credit unions and new credit unions, as well as low-income credit unions, may issue subordinated debt that can count toward their risk-based capital requirement. The webinar will address material terms of the rule and the subordinated debt instrument. We’ll also cover the regulatory approval process, eligible investors, the offering process, reasons to issue subordinated debt and the current interest rate environment. Key Takeaways Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Purchase Now$295 Members | $395 Nonmembers (Additional $50 for CD)One registration gives your entire credit union access to the on-demand recording until February 25, 2022.Already registered? Go to the Online Training Center to view live. Who Should Attend? NAFCU Certified Compliance Officers (NCCOs) NAFCU Certified Risk Managers (NCRMs) Chief Executive Officers Executive Vice Presidents Chief Financial Officers Education Credits NCCOs will receive 1.5 CEUs for participating in this webinar. NCRMs will receive 1.5 CEUs for participating in this webinar. CPA credit information is below; recommended 1.5 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Associate Director of Education, NAFCU Learning Objectives: Understand managing the regulatory approval process. Gain familiarization with key terms of the subordinated debt note. Review the issuance and marketing process. Discuss current market dynamics for credit union sub debt. Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.5 credits Recommended Field of Study: Finance - Technical National Association of Federal Credit Unions (NAFCU) is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. Learn more. About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, D.C. Your audio/video feed of the presenters includes presentation slides and downloadable handouts. You can easily submit your questions to the presenters at any time during the live broadcast, with no dialing over the phone! The audio and video stream directly through your computer. Web NAFCU firstname.lastname@example.org America/New_York public
Credits: NCRM, NCCO, CPE
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