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Financial Institution Letter
July 6, 2010
Contact
Senior Examination Specialist
Beverlea S.Gardner
(202) 898-3640
Bgardner@fdic.gov
Notes
Access FDIC Financial Institution Letters (FILs) on the FDIC’s website.
| Summary: | The Federal Housing Finance Agency(FHFA) has issued a statement relative to concerns with certain energy retrofit lendingprograms. Insured institutions should be aware of such programs, as these programs couldaffect their residential mortgage lending activities and the ability to sell loans toFannie Mae and Freddie Mac. |
- The FHFA statement may impact institutions' ability to sell residential mortgageloans to Fannie Mae and Freddie Mac.
- The FHFA statement advises that certain energy retrofit programs use themunicipal tax assessment process to ensure repayment, which results in apriority lien status that supersedes the position of existing properly recordedlien holders.
- The FHFA statement indicates that underwriting and consumer protectionstandards, as well as energy retrofit standards, are being developed for theseprograms to ensure borrowers have the ability to repay the new monies inaddition to existing obligations and consumers receive appropriatetruth-in-lending disclosures. The FDIC shares the FHFA's concerns about the lackof appropriate underwriting and consumer protection standards.
- The FHFA statement directs Fannie Mae, Freddie Mac, and the Federal Home LoanBanks to take specific actions that protect their operations.
- The FHFA's statement is available at www.fhfa.gov/webfiles/15884/PACESTMT7610.pdf .
- This alert is provided for informational purposes.
Distribution:
FDIC-Supervised Banks (Commercial and Savings)
SuggestedRouting:
Chief Executive Officer
Chief Lending Officer
Note:
FDIC financial institution letters (FILs) may be accessed from the FDIC's Web siteat www.fdic.gov/news/financial-institution-letters/2010/index.html .
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html .
Paper copies of FDIC financial institution letters may be obtained through theFDIC's Public Information Center, 3501 Fairfax Drive, E-1002, Arlington, VA 22226(1-877-275-3342 or 703-562-2200).
FIL-37-2010
Last Updated: July 6, 2010
