NAR along with an industry coalition sent a letter to Senators Rounds and Warner thanking them for submitting an amendment to the continuing resolution/CAREs2.0/stimulus legislation that passed Congress last week and signed by the president (View Congressional Record pages S7948 – S7949…bottom of page 9).
The proposed amendment would have required a GAO review of the FHFA's capital rule and its impact on interested parties like taxpayers, consumers, market participants, and underserved communities before it is implemented. There is a similar 1-year delay in implementation of the current expected capital losses (CECL) capital rule that affects banks in the CAREs act.
The main concern is that, while the Biden administration may stop or reverse the capital rule in time, the GSEs may modify their business models immediately to reflect the new capital rule, reducing use of CRT and raising costs. Furthermore, they will have other priorities that could delay the change and the rule could have more significant impacts if it is not altered.
The amendment did not make the final bill, but provides a marker for the next congress and administration to take up as well as a litmus test (e.g. an impact analysis which his lacking from the current capital rule) for future capital rules.