FHFA implements fee but may revisit capital framework that includes it
FHFA implements fee but may revisit capital framework that includes it
Abstract
The Federal Housing Finance Agency is moving ahead with a controversial new charge for now, but it's also exploring alternatives. Trade groups have expressed concern that the upfront 50 basis-point fee aimed at addressing counterparty risk undermines uniform mortgage-backed securities. The fee isn’t expected to immediately hurt the market because the Federal Reserve is currently supporting it. But the Fed is on track to slowly unwind its involvement. The FHFA is to gradually unwind. The Fed is to slowly Unveil its involvement in the.. to slowly unofficially unwinding its involvement, but the Fed has been working to slowly remove its involvement and put them on a more even playing field with the private market.