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        Fed Report Reveals Banker,                              could include, among other things, an explicit guarantee. Should
        Community Group Feedback on                             Congress create an explicit guarantee, he emphasized that “it
                                                                should be limited, clearly defined and paid for.”
        CRA Modernization                                       To read the remarks visit: https://www.fhfa.gov/Media/

        Bankers and community groups agree                      PublicAffairs/Pages/Prepared-Remarks-of-Dr-Mark-A-Calabria-
        on several areas of possible Community                  Director-of-FHFA-at-2019-Ginnie-Mae-Summit.aspx
        Reinvestment Act regulatory reforms,
        according to a summary of several                       Congress Extends NFIP through
        roundtable meetings released by the                     September 30 - House Committee
        Federal Reserve.
                                                                Approves NFIP and Beneficial
        The summary, based 29 roundtables
        nationwide that included more than                      Ownership Bills
        400 participants, showed agreement that: CRA assessment areas   President Trump has signed H.R. 2157,
        need to reflect community needs; rural communities have unique   a disaster aid relief bill that included a
        characteristics under CRA evaluations; the CRA performance test   provision to extend the National Flood
        structure needs reform and should include different evaluation   Insurance Program (NFIP) through
        methods rather than a single metric or ratio; CRA examinations   September 30, 2019.
        need more clarity, consistency and timeliness; and definitions of
        eligible community development activities need to be clearer.  The House Financial Services
                                                                Committee has voted unanimously
        The summary covered additional banker and community group   to approve a bill that would extend the National Flood Insurance
        feedback on assessment areas, CRA in underserved communities,   Program (NFIP) through September 30, 2024 and make several
        the CRA performance test structure, evaluation of performance   reforms to the program. Specifically, the bill addresses affordability
        and defining community development activities.          issues, improves flood mapping, flood plain management and

        To read the reportvisit: https://www.federalreserve.gov/  mitigation. It also includes the introduction of a “continuous
        publications/files/stakeholder-feedback-on-modernizing-the-  coverage” provision that allows borrowers who leave the program
        community-reinvestment-act-201906.pdf                   to purchase private flood insurance to return to the NFIP without
                                                                penalty.  The bill is the result of a compromise reached between
        FHFA Director Flags Risk from                           Chairwoman Maxine Waters (D-CA) and Ranking Member
                                                                Patrick McHenry (R-NC).
        Nonbank Mortgage Lenders
                                                                The committee also unanimously passed H.R. 3111; legislation
        Almost 50% of all mortgage originations                 sponsored by Rep. Nydia Velasquez (D-NY) that makes changes
        sold to Fannie Mae or Freddie Mac                       to the NFIP claims process, including requiring the reinstatement
        last year came from non-depository                      of the prudential regulators’ Question and Answer on NFIP
        institutions, FHFA Director Mark                        compliance and requires regular updates to the guidance.
        Calabria said at an industry event in
        Washington, D.C. Noting that “there                     The Committee also passed H.R. 2513, the Corporate
        are some key differences between banks                  Transparency Act of 2019, by a vote of 43 to 16. The legislation,
        and non-banks that we need to address                   which is sponsored by Rep. Carolyn Maloney (D-NY), establishes
        in a responsible way,” Calabria said that               a national database of beneficial ownership information to
        under his leadership, FHFA will work to   Mark Calabria  counter the use of shell corporations to move illicit funds. The bill
        improve counterparty risk standards at                  directs the Financial Crimes Enforcement Network (FinCEN)
        Fannie and Freddie. “Our goal is to ensure that originators have   to create a national database of beneficial ownership information.
        the financial strength to continue lending through any market   Corporations and limited liability companies would be required to
        weakness or stressed environment,” he said.             self-report beneficial owners to FinCEN.
        Calabria also outlined his plan for removing the GSEs from   These bills now proceed to the full House for a vote.
        conservatorship. A critical step in that process will be building
        capital at Fannie and Freddie, a process he expects to be underway
        by next year. He added that he will continue to work with
        Congress on a legislative solution to housing finance reform, which





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