Fannie Overseer Setting Capital Rules for Nonbank Mortgage Firms
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A U.S. housing regulator will require nonbank mortgage firms to meet minimum liquidity and net worth standards to curb risks to taxpayers from the rapidly expanding industry.
Companies selling mortgages to Fannie Mae and Freddie Mac or collecting payments on loans backed by the two U.S.-owned enterprises must meet the new standards, the Federal Housing Finance Agency said Friday. The agency will seek public comment before completing the proposal, which it said is likely go into effect by the end of the year.