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SFA News

Secretary Mnuchin: Treasury Will Not Alter Conservatorships of Fannie Mae, Freddie Mac

The Wall Street Journal reports that the terms of the conservatorship of Fannie Mae and Freddie Mac will not be fundamentally restructured under the Trump administration. Instead, on January 14 the Department of Treasury and the Federal Housing Finance Agency announced a more modest amendment to the Preferred Stock Purchase Agreements.

Industry News

Former CFTC Head Gensler Biden’s Choice to Lead SEC

Gary Gensler, former head of the Commodities Futures Trading Commission (CFTC), is expected to be nominated by President-elect Biden to lead the Securities and Exchange Commission (SEC). His nomination will be welcomed news by Democrats that lauded his accomplishments during his 2009 – 2014 tenure at CFTC where he created a “regulatory framework for derivatives, a multi-trillion dollar market that had largely been free from federal oversight.”

Industry News

Yellen Treasury Secretary Confirmation Hearing Set for 1/19

Former Chair of the Federal Reserve (Fed), Janet Yellen’s, confirmation hearing as Treasury Secretary is planned for January 19. According to the Wall Street Journal, Yellen is expected to be easily confirmed in front of the Senate Finance Committee with some GOP senators having already indicated their support of her nomination. If confirmed by the Senate, Yellen, 74, will be the first woman and the oldest to serve as Treasury Secretary in recent history.

Industry News

Pandemic Brings Most Bankruptcy Filings Since Financial Crisis

After the onset of the pandemic in 2020, more large U.S. companies filed for bankruptcy than in any year since the global financial crisis. According to Bloomberg data, energy, retail and consumer companies led a total of 244 filings, the most since 2009 when 293 companies filed.

Industry News

Fed Commits to Keep Buying Bonds Until Economy Reaches Full Employment

At their December 16th meeting, the Federal Open Market Committee (FOMC) decided to "continue to increase its holdings of Treasury securities by at least $80 billion per month and of agency MBS by at least $40 billion per month until substantial further progress has been made toward the FOMC’s maximum employment and price stability goals.”

Industry News

Mnuchin: Fannie, Freddie Privatization Left up to Biden Administration

In an interview with the Wall Street Journal, Treasury Secretary Mnuchin suggested that he is unlikely to support actions that would end the current state of the government conservatorships of Fannie Mae and Freddie Mac.

CFPB Finalizes QM Rule Changes

On December 10, 2020 the Consumer Financial Protection Bureau finalized changes to its Qualified Mortgage rule, moving away from a DTI and income verification standards and to a pricing construct to determine which loans are Qualified Mortgages.

SFA News

Shareholders and PSPAs: Summary of Collins v. Mnuchin Oral Arguments

On December 9, 2020, the Supreme Court heard oral arguments in Collins v. Mnuchin, which arose out of litigation initiated by GSE equity arguing that the Third Amendment to the Preferred Stock Purchase Agreements—which govern the terms of the 2008 bailout of the GSEs—should be vacated due to the unconstitutional structure of the FHFA.

Industry News

Department of Education Extends Federal Student Loan Forbearance

U.S. Department of Education suspended all federal student loan payments through the end of January 2021 with interest rates set at 0%.

Industry News

Industry Awaits Biden Nomination for CFPB Director

Bloomberg reports that industry observers are paying close attention to the Consumer Financial Protection Bureau (CFPB), especially as a 2020 Supreme Court case held that the CFPB Director position—which was previously a 5-year appointment that could only be terminated “for cause”—is now subject to serve at the pleasure of the President.