The Mortgage Bankers Association (MBA) expressed its approval of the revisions. MBA president and CEO Bob Broeksmit called the re-proposal a “smart move,” noting that the FHFA had responded to industry concerns.
“We commend FHFA for its receptiveness to our strong opposition to the initial proposal, which would have punished counterparties for potentially minor civil or administrative sanctions,” Broeksmit said in a statement. “The re-proposal appears to address some of MBA’s significant concerns outlined in our joint comment letter.
Broeksmit added that the changes, including refinements to due process and limiting the SCP to severe violations, were positive steps.
“We are pleased to see the elimination of the proposed immediate suspension order, refinements that preserve due process, and a narrowing of the application of the SCP to violations of a certain magnitude or gravity,” he added. “MBA and its single-family and multifamily members will review the re-proposal in greater detail and our forthcoming response will focus on any necessary improvements to the SCP regulation that strike an appropriate balance.”
Stay updated with the freshest mortgage news. Get exclusive interviews, breaking news, and industry events in your inbox, and always be the first to know by subscribing to our FREE daily newsletter.