FHFA Request for Comment on State-Level Guarantee Fee Pricing

On September 20, the FHFA released a notice presenting an approach to adjust the guarantee fees that Fannie Mae and Freddie Mac charge on single-family mortgages in states where costs related to foreclosure practices are statistically higher than the national average.  FHFA expects to direct Fannie and Freddie to implement pricing adjustments in 2013.  Comments must be submitted within 60 days after publication in the Federal Register.  FHFA ReleaseFederal Register Notice.

OCC Guidance on 1- to 4-Family Residential Real Estate

On September 17, the OCC issued guidance to national banks and federal savings associations on risk management practices for investor-owned, one- to four-family residential real estate lending where the primary repayment source for the loan is rental income.  The guidance includes: (i) credit risk management expectations; (ii) loan underwriting standards; (iii) loan identification and portfolio monitoring expectations; (iv) allowance for loan and lease losses considerations; (v) internal risk assessment and rating systems; and (vi) regulatory reporting, HOLA, and risk-based capital treatment.  OCC Release.