Full Committee Hearing: Privacy Rights and Data Collection in a Digital Economy
House Financial Services Committee
Wednesday, May 8
2:00 p.m. EST
Full Committee Markup
What We're Watching
Federal Reserve looking into “standing repo facility” program for reserves
Federal Reserve officials areconsidering a new programaimed at decreasing its $4 trillion balance sheet. The “standing repo facility” program, authored by St. Louis Fed economists David Andolfatto and Jane Ihrig, would allow banks to exchange Treasuries for reserves. Supporters of this program argue that this plan would reduce the regulatory burden some banks feel when holding what they deem “ultra-safe” assets, as well as accomplish the Fed’s goal of reducing its balance sheet. Critics argue that this plan could disrupt markets and lead to financial uncertainty. While the Fed isn’t expected to adopt this program soon, some industry experts believe it will be seriously discussed at future Federal Open Market Committee meetings.
The Federal Housing Finance Agency (FHFA) released its2018 Scorecard Progress Reportthis week. The report (found here) highlights the major activities of Fannie Mae and Freddie Mac in 2018 and details the progress they have made towards achieving their goals set out initially in the Conservatorship Strategic Plan. The scorecard also outlines the FHFA’s plan for Fannie and Freddie credit risk transfer programs, and details the FHFA’s effort to issue the Uniform Mortgage Backed Security platform through the Common Securitization Platform.
The New York Department of Financial Services (NYDFS) haslaunched its own versionof the Consumer Financial Protection Bureau (CFPB) called the Consumer Protection and Financial Enforcement Division (CPFED). NYDFS Superintendent Maria Vullo stated that the New York government created this new state agency because of the Trump administration’s “troublesome policy shift away from consumer protection”, according to Housing Wire. The new agency will be led by Katherine Lemire who was the former Assistant U.S. Attorney in the Southern District of New York and a partner at the StoneTurn consulting firm.
EU’s new securitization market struggles at the start
Earlier this year, the European Union began toimplement bloc-wide securitization standards,known as the Simple, Transparent and Standardized (STS) transactions. While the rules for STS have been finalized, many EU market participants are having trouble fully understanding the framework leading to ABS issuance falling in the first quarter of 2019. While some believe that this is a temporary set-back as a result of multiple new rules being introduced over a short period of time, others believe that these problems are caused by the absence of a single supervisory authority to regulate the European Markets.
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MBA Non-Member Price:
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Sponsorship Opportunities Now Available
SFIG Residential Mortgage Finance Symposium
The Structured Finance Industry Group’s 2019 Residential Mortgage Finance Symposium will once again be held at the Conrad New York, November 4-5, 2019. The Symposium will include top industry speakers, market-driven content, and a diverse array of industry engagement opportunities.
