* WASHINGTON (1/15/08)--The Office of Federal Housing Enterprise Oversight released a mortgage market note
Friday stating that if a bill passed last May by the House is enacted, it could create credit risk for Fannie Mae and Freddie Mac. The bill, which stalled in the Senate, would raise the conforming loan limit to 150%. Because of the increase, the GSEs would have to charge higher fees. In addition, most of the eligible mortgages would not count toward affordable housing goals set by the Department of Housing and Urban Development ... * WASHINGTON (1/15/08)--Foreign state-run investment funds that have given capital to major U.S. banks are under investigation as lawmakers continue to scrutinize foreign investments by U.S. companies (American Banker
Jan. 14). The Senate Banking, Housing and Urban Affairs Committee ordered the investigation to see if the infusions have caused security or economic concerns. The committee also will examine U.S. and international authorities’ oversight. The funds have received recent attention due to their acquisition of stakes in companies such as Citigroup Inc. and Merrill Lynch and Co. ... * WASHINGTON (1/15/08)--The Federal Deposit Insurance Corp. (FDIC) has issued a financial institution letter
of proposed rulemaking regarding the potential failure of FDIC-insured depository institutions. The first part would govern how and when deposit account balances would be determined; the second part proposes requirements to facilitate the process for determining the insurance status of deposits of large insured depository institutions. Comments on the notice are due April 14 ...