The notice is intended to communicate FHFA’s supervisory expectations for Fannie Mae and Freddie Mac “to establish and implement risk management policies and procedures for monitoring and valuing seller/servicers’ mortgage servicing rights.”
Economic uncertainty and rising borrowing costs have increased risk in both the residential and commercial real estate sectors, which could increase risks to U.S. financial stability, the Financial Stability Oversight Council warned in its annual report.
Banks remain well capitalized and with ample liquidity and sound credit quality, “although macroeconomic headwinds are a concern,” according to the Office of the Comptroller of the Currency’s Semiannual Risk Perspective report for fall 2022 issued today.
The Basel Committee on Banking Supervision today issued a newsletter focusing on credit risk, which has risen in recent months due to inflation and the COVID-19 pandemic.
The FDIC today said that the banking environment improved in 2021 as the economy recovered from a period of economic hardship the year prior.
As high inflation and economic uncertainties persist, Acting Comptroller of the Currency Michael Hsu said that “now is the time for banks to take a fresh look at their exposures and take actions to adjust their risk positions—to ‘trim their sails,’ so to speak—ahead of potential uncertainty and volatility.”
The nation’s large banks at the core of the financial system “continue to be resilient” while some financial vulnerabilities remain elevated, the Federal Reserve said today in its semiannual monetary policy report.
The federal banking agencies found that credit risk improved modestly in 2021 but remains high in the Shared National Credit portfolio—a bundle of large, syndicated bank loans that includes 5,764 borrowers and totals $5.2 trillion—according to the SNC Review report released today.
Five key factors for risk managers and C-suites in the year ahead.
The FDIC board yesterday determined that no changes will be made to the definition of “qualified residential mortgage” and related provisions of the credit risk retention rule, as recommended by ABA and other financial trade groups.