#2023-20, September 15, 2023

Fannie Mae Grants Temporary Relief to Maintain Seller Eligibility Requirements

Fannie Mae recently announced temporary relief for sellers, which allows Fannie Mae sellers to sell at least one (1) loan for calendar year 2023.

The temporary relief eases the Loan Sales requirement that mandates at least 12 loans per calendar year in order to maintain approval as a Fannie Mae seller. According to Fannie Mae, beginning on January 1, 2025 (for calendar year 2024) sellers must meet the minimum requirement of 12 loans per calendar year to Fannie Mae in order maintain approval.

The Association is pleased to see our work alongside ABA lead to this determination by Fannie Mae. While we appreciate the short-term relief for community banks, we will continue to pursue a long-term solution and will update you on such progress as we can.

Central Banking Digital Currency (CBDC) Bills Heard on U.S. Capitol Hill

Yesterday, the U.S. House Committee on Financial Services’ Subcommittee on Digital Assets, Financial Technology, and Inclusion held a “Digital Dollar Dilemma: The Implications of a Central Bank Digital Currency and Private Sector Alternatives” hearing, during which three pieces of legislation were considered.

The American Bankers Association (ABA) issued a statement ahead of the hearing stating that a “CBDC is unnecessary and presents unacceptable risks and costs to the financial system.” To read the ABA statement, click here.

We will keep you posted on any developments going forward.

U.S. Senate May Advance Cannabis Banking Bill Out of Committee Soon

Senate Banking Committee Chair Sherrod Brown (D-Ohio) indicated earlier this week that the cannabis banking bill – the Secure and Fair Enforcement (SAFE) Act – may advance out of the Committee in the coming weeks. The U.S. Department of Health and Human Services (HHS) recently recommended that the Drug Enforcement Agency (DEA) ease the federal classification of marijuana from a Schedule I to a Schedule III substance. The DEA has taken the recommendation under review, which must then send any proposal to reclassify to the U.S. Attorney General who has authority make such changes.

The Association along with the ABA and other state banking associations support the passage of the SAFE Act as it would allow banks to handle cannabis-related proceeds from state-licensed cannabis businesses and remain compliant with state and federal law and regulation. To read a past joint letter in support of the SAFE Act, click here.

U.S. Economy: Risk of a Mild Recession Remains

Earlier this week, the American Bankers Association’s (ABA) Economic Advisory Committee released a report stating that the U.S. economy remains at risk of falling into a mild recession in 2024. The economists on the Committee project “real economic growth slowing from 2.1% annualized during the first three quarters of 2023 to less than 1% annualized over the following three quarters.”

To read more about the Committee’s economic forecast, click here.

Federal Housing Finance Agency Seeking Applicants for Affordable Housing Advisory Committee

The Federal Housing Finance Agency (FHFA) is accepting applications to serve on its Affordable Housing Advisory Committee and seeks members with expertise in one or more of the following areas:

• Fair housing, fair lending, or civil rights
• Single-family lending, servicing, development, mortgage, or capital markets;
• Multifamily lending, servicing, development, mortgages, capital markets, or investments (i.e. Low-Income Housing Tax Credits);
• Consumer, tenant, or community advocacy;
• Housing market technology;
• State, local, or tribal government housing policies and programs; and
• Academics with a strong research and publishing or practitioner background, and a record of involvement in research and public policy, including public or academic service

The application deadline is October 13, 2023. To learn more about and apply to serve on the Committee, click here.