FHFA Finalizes Acquired Member Assets Rule

The Federal Housing Finance Agency today finalized a rule amending the acquired member assets regulation for the federal home loan banks. Among other things, the rule provides greater flexibility to FHLBs when selecting a model to estimate the credit enhancement required for AMA loans. FHLBs will also be allowed to transfer mortgage servicing rights on AMA loans to any institution, including non-FHLB members, and to acquire mortgage loans that exceed the conforming loan limits, provided those loans are guaranteed by a U.S. government agency or department.

FHFA also issued a final rule limiting the scope of activities requiring a FHLB to file a new business activity notice and streamlining the submission requirements. The rule is intended to provide home loan banks with greater flexibility to tailor their notices based on the types of new activity they choose to undertake. For more information, contact ABA’s Joe Pigg.