NAFCU and ICBA Challenge FHFA on GSE Capital Buffers

Oct 19, 2017

Home Diversification Corp., a startup fintech based in Manchester, N.H., has launched a consumer division called “Diversify My Home,”

A pair of trade groups representing longtime rival factions in the financial services industry have teamed up to urge the Federal Housing Finance Agency (FHFA) to allow the government-sponsored enterprises (GSEs) to rebuild their capital buffers.

In a joint letter to FHFA Director Mel Watt, the leaders of the National Association of Federally-Insured Credit Unions (NAFCU) and the Independent Community Bankers of America (ICBA) acknowledged that GSE reform from Congress was long overdue, but they also argued that the regulatory agency needed to ensure the GSEs could maintain capital to provide stability in the event of short-term losses.

“Allowing the GSEs to rebuild their capital buffers to avoid another draw of taxpayer support would maintain investor confidence, which is essential to the safety and soundness of the secondary market, and would prevent any further market disruptions,” NAFCU President and CEO Dan Berger said. “This would ensure the GSEs the continued ability to provide liquidity to credit unions, community banks and other lenders to support a vibrant housing finance system.”

“It is essential that the GSEs maintain a modest capital buffer—perhaps only enough to cover losses in a single quarter—so that they are not forced to draw on the Preferred Stock Purchase Agreement commitments at the expense of taxpayers,” added ICBA President and CEO Camden R. Fine. “Such an occurrence would not only erode investor confidence but would also taint the public’s perception of the housing finance system and the secondary market, putting the future of the housing finance system at risk. This self-inflicted outcome must be avoided.”

About the author

Phil Hall

Link copied

Published

Oct 19, 2017

Non-QM

What Non-QM Leaders Say Originators Should Do Before Year-End

At NMP’s Non-QM Town Hall, lender executives shared where they’re seeing volume, where originators can find untapped business, and why execution matters more than ever

The next Non-QM deal may not require another lead source.It could be an investor whose deal didn't work a year ago. A self-employed borrower sitting in an originator's CRM. A homeowner who needs cash but doesn't want to disturb a first mortgage. Or a past client who owns thr...

Tech

Newrez Turns Servicing Data Into Repeat Business For Brokers

HomeHub expansion routes financing interest from protected wholesale borrowers back to their originating loan officers

Newrez is extending its homeowner-engagement platform to wholesale borrowers, giving brokers a potential path back to clients when another mortgage opportunity emerges.HomeHub is now available to protected wholesale borrowers, allowing homeowners to monitor estimated home va...

Nov

Pasadena, CA

More from

Industry News

Rocket Makes VantageScore Its Default After Testing Finds Borrower Savings

After four months of testing, Rocket will make VantageScore 4.0 its preferred model for eligible retail loans while keeping both scoring options available to brokers

Industry News

Sep 29, 2026

CHLA: More Freddie Mac MBS Buying Could Narrow Mortgage Spreads

Trade group estimates greater Freddie participation could compress spreads another 10 to 12 basis points as Fannie has taken the lead in GSE mortgage-bond buying

Industry News

Sep 23, 2026

Early Loan-Limit Race Splits Into Three Tiers

Lenders are now offering $845,000, $847,440, or $850,000 before FHFA sets the official 2027 limits

Industry News

Sep 23, 2026

Better, Garg Clash Over Claimed 46% Shareholder Support

Better disputes its former CEO’s preliminary consent count as the two sides trade accusations and an Oct. 2 target date approaches

C-Suite Strategies

Sep 23, 2026

Fannie Changes How Rent From A Former Home Counts

Fannie now prohibits leases for departing residences and permits market-analysis tools instead of Form 1007, creating a key documentation difference from Freddie Mac

Regulation and Compliance

Sep 22, 2026