NAFCU’s Housing Finance Working Group discusses RFIs, capital framework updates
NAFCU’s Housing Finance Working Group held its first quarterly meeting of 2023 where they discussed the association’s advocacy with the Federal Housing Finance Agency (FHFA) and the latest regulatory updates from the agency.
The group highlighted the FHFA’s request for information (RFI) to understand the opportunities and potential risks associated with Fannie Mae and Freddie Mac, the government-sponsored enterprises (GSEs), issuing single-family social bonds under the ESG frameworks. They also talked about the agency’s proposed rule to amend certain Enterprise Regulatory Capital Framework provisions for GSEs. The proposed rule modifies provisions related to guarantees on commingled securities, multifamily mortgage exposures secured by properties with government subsidies, derivatives and cleared transactions, and credit scores.
In addition, the group discussed the FHFA’s work to update the enterprises’ credit score requirements. The agency recently announced it is seeking public input on the implementation of the new requirements, which mandate that credit unions that sell to the GSEs replace the classic FICO credit score model with the FICO 10T and the VantageScore 4.0. There will also be a transition from requiring three credit reports to two. Of note, NAFCU Vice President of Regulatory Affairs Ann Petros delivered remarks at an FHFA public session, urging for alternative credit scoring models that more accurately capture creditworthy borrowers and offer them access to affordable credit.
The CFPB is currently seeking comment on the mortgage loan originator rule under Regulation Z, specifically its impact on small entities. The working group reviewed the request for comment; NAFCU will submit feedback to the bureau.
NAFCU’s Housing Finance Working Group will next meet June 29. The association will continue to advocate with the FHFA for policies that promote sustainable and equitable access to affordable housing and ensure the credit union industry’s best interests in the housing finance system.
Growth & Retention
Add to Calendar 2023-09-22 14:00:00 2023-09-22 14:00:00 Understanding Credit Card Portfolio Sales & Agent Programs Both credit union and bank credit card issuers are under intense pressure from various sources, including competitor innovation, significant internal resource commitments, increasing operating expenses, uncertain regulatory and economic environments and a variety of capital and liquidity constraints. This has led to about 80% of all banks offering credit cards under an ‘agent issuing’ model, where a third-party issues credit cards under the financial institution’s name. While hundreds of credit unions do the same, and interest in this option has increased in the last two years, the majority of credit unions still own and manage this product themselves. Deciding whether this option can meet strategic, financial and member needs can be difficult to untangle. In this webinar, Understanding Credit Card Portfolio Sales & Agent Programs, you’ll delve into the structure of such programs, the financial and risk-profile impacts of such a decision, the contractual commitments required of both parties and discover evaluation tips and processes for any credit union that would like to evaluate this path. Key Takeaways Discover the structure of the agent issuing concept and obligations of both parties Understand the financial impact of entering such a program to the balance sheet, income statement, and critical performance ratios Ascertain the impacts to members, including both positive and negative possibilities Review the accompanying contractual structures and key considerations Develop an evaluation process that best protects the credit union’s financial and other outcomes Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until September 22, 2024.Go to the Online Training Center to access the webinar after purchase » Who Should Attend COOs CFOs NCCOs and compliance titles NCRMs and risk titles General counsel staff Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar CPA credit information is below; recommended 1.0 CPE credits. CPA Certification Credit Information Reviewer: Josie Collins, Senior Associate Director of Education, NAFCU Learning Objectives: See key takeaways Program Level: Basic Prerequisites Needed: None Advance Preparation Needed: None Delivery Method: Group Internet-Based Recommended CPE Credits: 1.0 credits Recommended Field of Study: Regulatory Ethics – Technical About Our Webinars Our webinars are streamed live from NAFCU headquarters near Washington, DC. 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 email@example.com America/New_York public
Credits: NCCO, NCRM, CPE
Get daily updates.
Subscribe to NAFCU today.