Filtered by category: Legislative Clear Filter

FHFA Seeks Input on Single-family Pricing Framework

Originally published on May 15, 2023, for the Federal Housing Finance Agency.

Today, the Federal Housing Finance Agency (FHFA) issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) single-family pricing framework. The RFI solicits public feedback on the goals and policy priorities that FHFA should pursue in its oversight of the pricing framework.

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FHFA Rescinds Upfront Fees for Mortgages Based on DTI Ratio

Originally published on May 10, 2023, by Adam Russell for the Federal Housing Finance Agency.

The Federal Housing Finance Agency (FHFA) today announced that it has rescinded the upfront fees based on borrowers' DTI ratios for loans acquired by Fannie Mae and Freddie Mac (the Enterprises). FHFA announced in March it would delay implementation in order to engage with industry stakeholders and better understand their concerns.

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Appraisal Standards Board Adopts New Edition of USPAP

Originally published on May 5, 2023 by Amy Kaufman for The Appraisal Foundation.

New edition will be effective January 1, 2024

(Washington, DC) May 5, 2023 –The Appraisal Standards Board today voted to adopt the Fifth Exposure Draft of proposed changes to the Uniform Standards of Professional Appraisal Practice (USPAP). The new edition will be available this fall and will become effective on January 1, 2024. Unlike previous editions, it will not have an end date.

“Conducting this comprehensive review and revision of the Ethics Rule will benefit the profession and the public,” said Appraisal Standards Board Chair Michelle Czekalski Bradley. “The Board was pleased by the results of this process and feels that this new edition of USPAP will be an asset to appraisers and the public alike who are seeking to gain a better understanding of an appraiser’s ethical obligations and requirements under fair housing laws and regulations. Bias and discrimination have never been permitted by our standards, and now that is clear to all who read them.”


All exposure drafts are developed by the Appraisal Standards Board and released for public comment. Successive exposure drafts are updated and released based on public comments on previous drafts.




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Agencies Outline Enforcement Efforts Against Discrimination, Bias in Automated Systems

JOINT STATEMENT ON ENFORCEMENT EFFORTS
AGAINST DISCRIMINATION AND BIAS IN AUTOMATED SYSTEMS

Rohit Chopra, Director of the Consumer Financial Protection Bureau, Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, Charlotte A. Burrows, Chair of the Equal Employment Opportunity Commission, and Lina M. Khan, Chair of the Federal Trade Commission issued the following joint statement about enforcement efforts to protect the public from bias in automated systems and artificial intelligence:

America’s commitment to the core principles of fairness, equality, and justice is deeply embedded in the federal laws that our agencies enforce to protect civil rights, fair competition, consumer protection, and equal opportunity. These established laws have long served to protect individuals even as our society has navigated emerging technologies. Responsible innovation is not incompatible with these laws. Indeed, innovation and adherence to the law can complement each other and bring tangible benefits to people in a fair and competitive manner, such as increased access to opportunities as well as better products and services at lower costs.

Full Statement

Bipartisan Legislation Targets Appraisal Licensing Modernization

Originally published on April 26, 2023, by The Appraisal Institute. 

The Portal for Appraisal Licensing Act, known as the PAL Act, was reintroduced in the House of Representatives on April 20. The bipartisan legislation is intended to modernize the real estate appraisal licensing system to reduce costs and cut red tape for appraisers and those who use the services of appraisers. 

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FHFA Seeks Comments on Proposed Fair Housing Rule for GSEs

Originally published on April 19, 2023, for the Federal Housing Finance Agency.

Today, the Federal Housing Finance Agency (FHFA) announced that it is seeking comment on a proposed rule that would formalize many of the Agency’s existing practices and programs regarding fair housing and fair lending oversight of its regulated entities.

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Single-tenant Net Lease Cap Rates Rise: The Boulder Group

Originally published on April 12, 2023, by the Boulder Group.

Cap rates in the single-tenant net lease sector increased during the first quarter, marking four consecutive quarters of growth, The Boulder Group reported April 6 in its Q1 2023 Net Lease Market report. Industrial cap rates rose to 6.77% while retail and office cap rates reached their highest level since the third quarter 2020 at 6.05% and 7%, respectively.

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AI Letter to FHFA Critical of Value Acceptance Program

Originally published on April 19, 2023, by the Appraisal Institute.

The Appraisal Institute on April 13 sent a letter to Federal Housing Finance Agency Director Sandra Thompson that was critical of Fannie Mae’s “value acceptance” program. AI expressed its concerns about the program's potential effect on the valuation profession. 
 
Specifically, AI said it was concerned that the value acceptance program is creating an alternative workforce of property data collectors that may negatively affect aspiring appraisers’ ability to enter the valuation profession. 
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FHFA to Host Second ASC Hearing on Appraisal Bias

Originally published on April 6, 2023, by the Federal Housing Finance Agency.

The Federal Housing Finance Agency FHFA) will host the Appraisal Subcommittee (ASC) on Friday, May 19, 2023, for its second public hearing on appraisal bias in coordination with ASC member agencies. The intent of this hearing is to explore the current regulatory framework for the appraisal industry by focusing on appraisal standards, appraiser qualification criteria, barriers to entry into the profession, and appraisal practices.

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US Bank and Supervisory Rules May be too Loose and Require Review, Yellen Says

Originally published on March 30, 2023, by David Lawder for Reuters.com.

 U.S. Treasury Secretary Janet Yellen said on Thursday that banking regulation and supervisory rules need to be re-examined in the wake of the Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) failures to ensure current banking system risks are addressed.

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Resources Issued for Redesigned Uniform Appraisal Dataset

Originally published on March 29, 2023, by the Uniform Appraisal Dataset Advisory Group.

Uniform Appraisal Dataset Redesign Begins Rollout Phase

The Uniform Appraisal Dataset (UAD) and Forms Redesign has taken a big step by announcing the release of the implementation resources. Freddie Mac and Fannie Mae (the GSEs) have worked on the UAD redesign since 2018, leveraging extensive stakeholder input to update the appraisal dataset, align it with current mortgage industry data standards, and replace the GSE appraisal forms with a single data-driven, flexible, and dynamic appraisal report for any residential property type. To begin the multiyear rollout phase, the GSEs have posted an industry playbook, technical specifications, and sample appraisal reports.

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HUD Gives $54M to Groups in 42 States to Fight Appraisal Bias, Housing Discrimination

Originally published on March 21, 2023, by the U.S. Department of Housing and Urban Development Public Affairs.

The U.S. Department of Housing and Urban Development (HUD) today awarded $54 million to 182 fair housing organizations across the country under its Fair Housing Initiatives Program (FHIP). The grants will provide $28,200,000 to support the efforts of national, state, and local fair housing entities working to address violations of the Fair Housing Act and helping to end discrimination in housing. In addition, HUD provided $26,350,000 in funding to its second and third-year Private Enforcement Initiative grantees to continue fair housing enforcement efforts nationwide. A state-by-state breakdown of the awardees is available here.

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Fannie Revises Policy for Appraising Some Manufactured Homes

Originally published on March 1, 2023, by Fannie Mae.

Overview

Fannie Mae requires market-based property valuations for manufactured homes demonstrated by a well-developed sales comparison approach to value that is further supported by the cost approach to value.

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FHFA Delays Fee for Buyers with Higher Debt-to-income Ratios

Originally published on March 15, 2023, by Adam Russell for FHFA.

​​The Federal Housing Finance Agency (FHFA) has taken a number of steps since January 2022 to update Fannie Mae and Freddie Mac’s (the Enterprises) single-family guarantee fee pricing framework with a special focus on upfront fees. In January 2023, FHFA announced redesigned and recalibrated grids for upfront fees in addition to a new upfront fee for certain borrowers with a debt-to-income (DTI) ratio above 40 percent. These updated pricing grids include the upfront fee eliminations announced in October 2022 to increase pricing support for purchase borrowers limited by income or by wealth.​

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Pace of Interest Rate Hikes May Increase: Fed

Originally published on March 7, 2023, by Brian Cheung for NBC News.

Federal Reserve Chairman Jerome Powell told lawmakers Tuesday that policymakers may have to speed up their interest rate hikes to tame high inflation.

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Fannie Mae: Appraisals No Longer the ‘Default Requirement’

Originally published on March 8, 2023, by the Appraisal Institute.

Fannie Mae on March 1 updated its Selling Guide to include a range of options for property valuations as the government-sponsored enterprise moves away from suggesting that an appraisal is a “default requirement.” Fannie notes that home valuation options include value acceptance, value acceptance plus property data and hybrid appraisals.  
 
Read Fannie Mae’s updated Selling Guide
 

US Supreme Court Takes Case that Could Shutter CFPB

Originally published on February 27, 2023, by Nina Totenberg for NPR.

The Supreme Court agreed on Monday to take up a case that could threaten the existence of the Consumer Financial Protection Bureau and potentially the status of numerous other federal agencies, including the Federal Reserve.

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FinCEN: Be Wary of CRE Purchases from Sanctioned Russians

Originally published on January 25, 2023, by the Financial Crimes Enforcement Network.

The Financial Crimes Enforcement Network on Jan. 25 sent an alert to financial institutions warning them to look out for potential commercial real estate purchases made by Russian investors who have been sanctioned. FinCEN specifically warned against vulnerabilities based on a review of the Banking Secrecy Act.

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Federal Reserve Bumps Interest Rates a Quarter Point, Anticipates Further Increases

Originally published on February 1, 2023, by Jeff Cox for CNBC.

The Federal Reserve on Wednesday raised its benchmark interest rate by a quarter percentage point and gave little indication it is nearing the end of this hiking cycle.
 
Aligning with market expectations, the rate-setting Federal Open Market Committee boosted the federal funds rate by 0.25 percentage point. That takes it to a target range of 4.5%-4.75%, the highest since October 2007.

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White House Unveils Plans for Rent Protections, Affordability

Originally published on January 25, 2023 by the White House.

Today, the Biden-Harris Administration is announcing new actions to increase fairness in the rental market and further principles of fair housing. These actions align with a new Blueprint for a Renters Bill of Rights that the Administration is also releasing today. The Blueprint lays out a set of principles to drive action by the federal government, state and local partners, and the private sector to strengthen tenant protections and encourage rental affordability.

Read the Key Actions