On May 21, the Federal Reserve Board proposed adding certain general obligation state and municipal bonds to the range of assets a banking organization may use to satisfy the Liquidity Coverage Ratio (LCR) requirements designed to ensure that large banking organizations have the capacity to meet their liquidity needs during a period of financial stress. Subject to specified limits, the proposed rule would allow investment grade, general obligation U.S. state and municipal bonds to be counted as high-quality liquid assets (HQLA) up to certain levels if they meet the same liquidity criteria that currently apply to corporate debt securities. Release. Proposal.
On May 20, the FHFA announced that Fannie Mae and Freddie Mac are issuing new finalized operational and financial eligibility requirements for mortgage seller/servicers. The updated requirements will be communicated through guides, bulletins and announcements and through best practices documents provided by Fannie and Freddie. The operational requirements become effective no later than September 1, 2015 and the financial requirements become effective December 31, 2015. Release. Fannie Mae and Freddie Mac FAQs.
On May 15, the FHFA released an update on the structure of the Single Security, a project involving the development of a single mortgage-backed security that would be issued by Fannie Mae or Freddie Mac. The update contains FHFA’s decisions made in response to input previously provided by industry stakeholders. Release. Update.
On May 22, DBRS released its methodology for rating entities in the real estate industry. Report.
On May 21, DBRS released its methodology for reviewing ratings of Canadian structured finance and covered bond transactions. Report.
On May 20, Moody’s released its methodology for rating trade receivables-backed transactions. Report.
On May 20, Moody’s released its methodology for rating “credit tenant lease” (CTL) obligations. Report.
On May 20, Moody’s released its methodology for rating corporate synthetic collateralized debt obligations (CSOs). Report.
On May 19, Moody’s released its methodology for rating commercial mortgage backed securities (CMBS) in Europe, Middle East and Africa (EMEA). Report.
On May 19, Fitch released its updated criteria for rating global aircraft operating lease ABS. Report.
On May 18, Fitch updated its International Local and Regional Government Ratings Criteria. Report.
On May 18, Fitch updated its U.S. Public Power Rating Criteria. Report.
On May 12, The Federal Reserve Bank of New York’s Household Debt and Credit Report revealed that aggregate household debt balances were largely flat in the first quarter of 2015. At of the end of March, total household indebtedness was $11.85 trillion, a $24 billion, or a 0.2 percent, increase during the first quarter of this year. The slowdown in growth can be attributed to negligible uptick in mortgage balances, which are the largest component of household debt. Release.
On May 12, the SEC and FINRA announced the opening of registration for their 2015 National Compliance Outreach Program for Broker-Dealers. The program is intended to provide an open forum for regulators and industry professionals to discuss compliance practices and exchange ideas on compliance structures. Release.
On May 7, DBRS published a report on it methodology for rating U.S. Timeshare Loan Securitizations. Release.
On April 30, six federal regulatory agencies jointly issued a final rule establishing minimum requirements for state registration and supervision of appraisal management companies that provide appraisal management services to lenders, underwriters and other principals in the secondary mortgage markets, as required by Section 1473 of the Dodd-Frank Act. Press Release. Final Rule.
On April 30, the Federal Housing Finance Agency (FHFA) released a report providing the results of annual stress tests Fannie Mae and Freddie Mac are required to undergo under the Dodd-Frank Act. The report provide updated information on possible ranges of future financial results for Fannie Mae and Freddie Mac under severely adverse economic conditions. Press Release. Report.