This story appeared in Bank Digest.
A Federal Housing Finance Agency final rule reorganizes and relocates current regulations governing the Federal Home Loan Banks' (Banks) Acquired Member Asset (AMA) programs. As required by the Dodd-Frank Act, it removes and replaces references in the current regulation to, and requirements based on, ratings issued by a Nationally Recognized Statistical Ratings Organization. It also provides a Bank greater flexibility in choosing the model it can use to estimate the credit enhancement required for AMA loans. Additionally, the final rule adds a provision allowing a Bank to authorize the transfer of mortgage servicing rights on AMA loans to any institution, including a nonmember of the Federal Home Loan Bank System. The final rule is effective Jan. 18, 2017.