The Federal Housing Finance Agency (FHFA) is considering allowing additional financial firms, including nonbank mortgage lenders, access to the FHLB network. Currently, the FHLB network offer support to both depository and non-depository financial institutions. The expansion of FHLB’s services include a wider range of mortgage firms in order to provide greater access and flexibility to the housing finance system.
Under the FHFA’s proposal, nonbank mortgage lenders would have access to a steady source of mortgage funds backed by government-sponsored enterprises Fannie Mae and Freddie Mac. If implemented, the proposal would reduce the cost and difficulty of obtaining funds through private capital markets by the nonbank lenders. As a result, these lenders would become much more competitive in the mortgage industry.
Key Points:
• The Federal Housing Finance Agency (FHFA) is considering allowing additional financial firms, including nonbank mortgage lenders, access to the FHLB network
• The expansion of FHLB’s services include a wider range of mortgage firms in order to provide greater access and flexibility to the housing finance system
• If implemented, the proposal would reduce the cost and difficulty of obtaining funds through private capital markets by nonbank lenders
• As a result, these lenders would become much more competitive in the mortgage industry
You can read this full article at: https://www.housingwire.com/articles/fhfa-considers-giving-nonbank-mortgage-lenders-access-to-fhlbs-bloomberg/(subscription required)
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