Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’

first_img April 10, 2015 965 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Community Home Lenders Association Department of Treasury FHFA GSE Profits Jack Lew Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’ The Community Home Lenders Association (CHLA) has written a letter to U.S. Department of Treasury Secretary Jack Lew requesting that a portion of Fannie Mae and Freddie Mac profits be set aside for later use by small-and mid-sized lenders.CHLA asked for the funds contributed by the GSEs under the FHFA/Treasury Preferred Stock Purchase Agreement to be placed in a Capitalization Reserve Account, “for later use as needed for capitalization of a cash window for smaller mortgage lenders under housing finance reform.”The step of setting aside a portion of GSE profits for capitalization of a cash window would achieve the goal of reducing taxpayer risk through risk sharing while preserving full small lender access, according to the letter. CHLA first addressed the subject last year in a letter to FHFA last July.The letter CHLA wrote to Lew, dated April 9, cited bipartisan legislation approved by the Senate Banking Committee (S. 1217). Section 315 of the bill authorized the creation of a Small Lender Mutual in order to meet the cash window needs of small- and medium-sized loan originators.”Debate on Congressional reform of the Enterprises established that there are a significant number of mortgage lenders that believe that it is critical under any housing reform to have a fully capitalized cash window, capable of fully meeting all the market needs of ALL small and mid-sized lenders on fully competitive rates and terms. These lenders have a legitimate question in asking where the funds to capitalize a cash window will come from – if not from Enterprise profits that are otherwise now just going to Treasury.”GSE profits have been the subject of several lawsuits by investors in the last two years. All GSE profits since 2012 have been swept into Treasury, a practice investors say is unconstitutional and leaves shareholders shortchanged. Fannie Mae and Freddie Mac required a combined $188 billion bailout in 2008, after which they were taken into conservatorship by FHFA.The subject of the FHFA’s conservatorship of Fannie Mae and Freddie Mac remains a hot one and a much debated one in the housing industry. One of the reasons for concerns among stakeholders is that GSE profits fell from a combined $135 billion in 2013 down to $22 billion in 2014, and Fannie Mae and Freddie Mac cannot legally accumulate a financial cushion to absorb future losses – they must pay a dividend to Treasury each quarter equal to the excess of their net worth over an applicable capital reserve amount. That capital buffer is currently $1.8 billion and is required to be reduced by $600 million per year until it reaches zero by 2018. Should the GSEs’ losses exceed their capital buffer, they would require another draw on Treasury.”Regardless of the ultimate resolution, we grow increasingly concerned that one of the most obvious sources of capitalization for such a Cash Window – payments under the PSPA – continue without any action to set aside a portion of these payments in reserve for this purpose,” CHLA wrote in the letter to Lew. “To date, the Enterprises have repaid the Treasury advance plus tens of billions of dollars more – but none of those funds will be available in the future for this critical purpose, without a change like the one we recommend.”A copy of the letter was also sent to FHFA Director Mel Watt. The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Nomura, FHFA Present Closing Arguments in MBS Trial Next: Lambert Announces Departure from Treasury’s Making Home Affordable Program Home / Daily Dose / Community Lenders Request Portion of GSE Profits from Treasury to Create ‘Cash Window’ About Author: Brian Honeacenter_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago in Daily Dose, Featured, Government, News Servicers Navigate the Post-Pandemic World 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Related Articles The Best Markets For Residential Property Investors 2 days ago Community Home Lenders Association Department of Treasury FHFA GSE Profits Jack Lew 2015-04-10 Brian Honea Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Demand Propels Home Prices Upward 2 days ago Share Save Subscribelast_img read more

Continue Reading

[COVID-19] ‘Non-residents Cannot Be Enlarged On Bail At This Stage’, Calcutta HC Dismisses Bail Plea By Bangladeshi National[Read Order]

first_imgNews Updates[COVID-19] ‘Non-residents Cannot Be Enlarged On Bail At This Stage’, Calcutta HC Dismisses Bail Plea By Bangladeshi National[Read Order] Mehal Jain17 April 2020 2:17 AMShare This – xThe Calcutta High Court on Thursday denied bail to a Bangladeshi national, who has been in custody for 270 days, arrested under section 411 and 414, IPC for ‘receiving’ and ‘concealing’ stolen property. On behalf of the applicant it was urged that he is a Bangladeshi national ‘but that should not stand in the way of granting bail”, that “he has been in custody for 270 days”, and that…Your free access to Live Law has expiredTo read the article, get a premium account.Your Subscription Supports Independent JournalismSubscription starts from ₹ 599+GST (For 6 Months)View PlansPremium account gives you:Unlimited access to Live Law Archives, Weekly/Monthly Digest, Exclusive Notifications, Comments.Reading experience of Ad Free Version, Petition Copies, Judgement/Order Copies.Subscribe NowAlready a subscriber?LoginThe Calcutta High Court on Thursday denied bail to a Bangladeshi national, who has been in custody for 270 days, arrested under section 411 and 414, IPC for ‘receiving’ and ‘concealing’ stolen property. On behalf of the applicant it was urged that he is a Bangladeshi national ‘but that should not stand in the way of granting bail”, that “he has been in custody for 270 days”, and that “the stolen articles have been recovered and copy of seizure list emailed”. It may be noted that both the offences attract a maximum imprisonment for 3 years and/or fine. The applicant’s counsel placed Reliance on a judgement of 24th July, 2014 of a Division Bench of the Court in Swapna Akhter v. State of West Bengal, where a Bangladeshi citizen, a housewife aged around 25 years, having entered India on a valid passport and Visa but failed to leave the country prior to the expiry of her Visa and therefore, found in breach of the provisions of the Foreigners Act, was granted bail. In that case, the Court had taken note of the representation made by the petitioner’s father before the appropriate government in connection with her detention, the correspondence exchanged between the two governments regarding her repatriation, the validity of her passport and the fact that she entered India on a valid Visa, to afford “a semblance of identity to the petitioner”. “The ratio of Swapna Akhter does not apply to him in the present situation”, remarked the Single Judge. Reference was also made to the directions of the state’s High Powered Committee regarding release of convicts/undertrials eligible for parole or interim bail, in pursuance of the Supreme Court order for decongestion of jails in view of the COVID outbreak. “Directions given in the High Powered Committee’s report dated 27th March, 2020 are for giving benefit of judgment dated 2nd July, 2014 of Supreme Court in Arnesh Kumar – Versus – State of Bihar to convicts/undertrials in offences, except those specified. Further additional direction in the alternative is, inter alia, that convicts or undertrial prisoners having residence outside the State may not be considered for release at this stage. This stage is the stage where there is lock down because of pandemic on COVID-19”, stated the High Court. Rejecting the bail application, the Single Bench expressed, “The applicant since not resident in the State as being a Bangladeshi national, cannot be considered for grant of bail at this stage”Click Here To Download Order[Read Order] Subscribe to LiveLaw, enjoy Ad free version and other unlimited features, just INR 599 Click here to Subscribe. All payment options available.loading….Next Storylast_img read more

Continue Reading