Concerns about credit concentrations at the Federal Home Loan banks are opening the door to a wider conversation about — and likely rulemakings on — stricter regulation of these government-sponsored enterprises.

Federal Housing Finance Agency Director Mel Watt sketched a regulatory vision this week that included greater scrutiny of large exposures to single borrowers and of funding mechanisms used by the 11 banks, as well as serious consideration of new risk-based capital and liquidity rules.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.