Asserting that it could negatively impact mortgage rates and credit availability, Rep. Blaine Luetkemeyer (R-Mo.) wrote to the acting director of the Federal Housing Finance Agency, Joseph Otting, asking him how the Financial Accounting Standards Board’s current expected credit loss (CECL) standard will affect Fannie Mae and Freddie Mac.
Luetkemeyer included several questions addressing his concerns about how implementation of the CECL standard will affect the government-sponsored enterprises’ capital reserves and lending abilities.
Find out what specific concerns he raised.