Is it just me, or does it seem like federal regulators are vying with each other to be the top "cop on the beat" for the mortgage industry? It's like they're contestants on American Idol: Regulator Round.
Early on in the Biden administration, the CFPB was the contestant out in front, announcingbig personnel moves,warning servicers and generallyreasserting their dominance after four long years doing warm-up shows in casinos. As the most recent winner of the Top Regulator award, they seemed like the clear favorite going into this year.
But then HUD showed up in a big way! Biden charged HUD with leadingan interagency task force that included the CFPB, and with their laser focus on fighting housing discrimination, they now have a real shot at the title. You can almost see Ryan Seacrest in the background, calculating whether he'll be hugging HUD after it's all said and done.
But we're still in early rounds, and a new competitor is shaking up everything that the judges thought they knew. That's right, the FHFA has decided to BRING IT! The agency proposednew affordable housing benchmarks for Fannie and Freddie loan purchases in minority and low-income Census tracts. If the GSEs don't meet the proposed goals, the FHFA can bringenforcement action or levy penalties. Talk about flexing!
It's now anyone's guess who will win the Top Regulator contest. Hopefully, borrowers, especially those who have historically been shut out of homeownership, benefit from all the oversight. Otherwise, those in the mortgage industry will have jumped through hoops for nothing. It will be"a bit like ordering a hamburger and only getting the bun."
Until tomorrow —
Sarah Wheeler
HousingWire Editor in Chief
P.S. We'll be talking about all the ways the regulators are collaborating at our HW Annual event Sept. 27-28 in Dallas. Find out morehere and sign up for our premium membership program HW+here to get a discounted rate.
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