Watt suggests GSEs need to hold some capital, urges Congress to act on housing reform

GSE capital buffer will hit 0 soon
Federal Housing Finance Agency Director Mel Watt once again pressed Congress on the urgent need for housing finance reform due to the imminent government-sponsored enterprise capital buffer timeline. In less than three months, both Fannie Mae’s and Freddie Mac’s capital buffer will fall to zero. Is the market ready for this?
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Monday Morning Cup of Coffee: Feds finally end AIG oversight

Plus, Mnuchin defends tax plan and some good news in Miami
In just the latest chapter of the Trump administration's deregulation playbook, The Financial Stability Oversight Council, created by Dodd-Frank and comprised of 10 senior financial regulators, including Treasury Secretary Steven Mnuchin, CFPB Director Richard Cordray and Federal Reserve Chair Janet Yellen, voted to remove federal oversight of American International Group Friday night.
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CoreVest expands into wholesale lending for real estate investors

Seeks brokers who serve investors
CoreVest American Finance Lender, the lender formerly known as Colony American Finance, is expanding into wholesale lending for real estate investors. To lead the company’s expansion into wholesale lending, CoreVest hired Samuel Bjelac to serve as vice president of wholesale lending.
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House passes bipartisan reform to encourage private flood insurance

Here's how this plays into the larger effort to reform the National Flood Insurance Program
The House of Representatives voted Thursday to pass legislation that includes a bipartisan act that encourages the creation of private flood insurance markets. While this falls outside of the broader debate to reform the National Flood Insurance Program, it addresses a key issue in flood insurance coverage. But due to the timing of the legislation, it wasn’t nearly as bipartisan of a bill as it was in the past.
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Chicago becomes second major city to sue Equifax over data breach

Follows San Francisco in suing credit reporting agency
For the second time in two days, one of nation’s largest cities announced that it is suing Equifax over the credit reporting agency’s massive data breach, which led to the personal information of 143 million U.S. consumers being exposed. First it was the city of San Francisco, and now, Chicago is suing as well.
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Freddie Mac: Mortgage rates stay put, for now

Further increases could be on the horizon
After increasing last week for the first time in months, this week mortgage rates came to a stop. However, movement in the 10-year Treasury yield shows this stop is likely only temporary, and rates could begin increasing once again next week.
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