FHFA

Shrinking the Federal Home Loan Bank System from 11 banks to eight would save members money, improve efficiency and generate more money for affordable housing.

Federal Housing Finance Agency Director Bill Pulte is the new chair for both and he has removed several members while adding a few new names at each.

Three Democratic senators joined Republican colleagues to confirm the businessman, who previously voiced his support for easing government regulations.

Trump administration nominees Bill Pulte and Jonathan McKernan will face Senate scrutiny Thursday over their approaches to oversight, with industry support but expected Democratic opposition, particularly from Sen. Elizabeth Warren.

Some reforms to the system might be necessary, but it would be unwise to eliminate a critical source of funding for banks across the country.

The nominee to lead Federal Housing Finance is head of Pulte Capital Partners, which invests in homebuilding related businesses.

The Senate Banking Committee Chair launched an agenda that puts agencies on a shorter leash and separately took aim at the FHFA recent moves.

Making the cancellation of private mortgage insurance policies automatic when a home's loan-to-value ratio is lower than 80% would be a huge benefit for borrowers.

The finalized rule adds flexibility to the capital rules applied to the Federal Home Loan banks to help them extend credit to their members.

Releasing the GSEs from government conservatorship is on the agenda for the incoming Trump administration. Doing so could threaten the 30-year fixed rate mortgage.