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aRTiCLeS

racial and ethnic bias. The Fannie and Freddie policies have agency projects that the reserve ratio remains on track to reach the
similar requirements. statutory minimum of 1.35% in 2026.
“We know that biased home appraisals not only The FDIC established the restoration plan in 2020 to return
disproportionately harm homeowners of color, but stunt the DIF reserve ratio to its statutory minimum by 2028. The
economic opportunity for the communities we serve,” HUD recent increase in the DIF balance does not include the cost of
Acting Secretary Adrianne Todman said. “Today, we are protecting uninsured deposits as a result of the FDIC’s systemic
announcing a new step in our work to root out racial and ethnic risk determination announced following the failures of Silicon
bias in home valuations, which will give borrowers greater ability Valley Bank and Signature Bank, as the agency is required by
to have their home valuation reconsidered.” statute to recover those losses through one or more special
assessments, according to agency staff. The FDIC announced last
Read the HUD/FHA announcement: https://www.hud.gov/press/
press_releases_media_advisories/HUD_No_24_096 year that the assessment would be collected at an annual rate of
approximately 13.4 basis points—3.36 basis points quarterly—
Read he FHFA announcement: https://www.fhfa.gov//Media/ for an anticipated eight quarterly assessment periods. No bank
PublicAffairs/Pages/FHFA-Announces-Enterprise-Reconsideration-of- with total assets below $5 billion will pay the assessment.
Value-Policies.aspx
Read more: https://www.fdic.gov/news/press-releases/fdic-board-
FHFA Issues Fair Lending Final directors-releases-semiannual-update-restoration-plan
Rule FDIC's Gruenberg Announces

The Federal Housing Finance Agency issued a final rule to codify Intention to Resign
many of its existing practices and programs regarding fair housing
and fair lending oversight of its regulated entities: Fannie Mae, FDIC Chairman Martin Gruenberg announced that he will
Freddie Mac and the Federal Home Loan Banks. resign once a successor has been named to fill his position. The
announcement comes after a third-party investigation found
Among other things, the rule makes changes to Fannie’s and widespread sexual harassment and discrimination at the FDIC.
Freddie’s Equitable Housing Finance Plans to promote greater While the report found no evidence directly linking Gruenberg to
accountability, adds oversight of unfair or deceptive acts or the alleged harassment, investigators spoke with FDIC employees
practices to FHFA’s fair housing and fair lending oversight who said the chairman lashed out angrily at staff, and he has faced
programs, requires additional certification of compliance by all calls from lawmakers in both parties to step down.
the entities, and establishes more precise standards related to fair
housing, fair lending and equitable housing principles for the “It has been my honor to serve at the FDIC as chairman, vice
entities’ boards. chairman and director since August of 2005,” Gruenberg said in
a statement. “Throughout that time, I have faithfully carried out
The final rule also creates a new requirement for FHLBs to the critically important mission of the FDIC to maintain public
annually report on any actions they voluntarily take to address confidence and stability in the banking system. In light of recent
barriers to sustainable housing opportunities for underserved events, I am prepared to step down from my responsibilities
communities. However, it does not require the FHLBs to once a successor is confirmed. Until that time, I will continue to
undertake such actions or engage in the planning process required fulfill my responsibilities as chairman of the FDIC, including the
of Fannie or Freddie. transformation of the FDIC’s workplace culture.”

Read more: https://www.fhfa.gov/SupervisionRegulation/Rules/ In a statement, House Financial Services Committee Chairman
RuleDocuments/Equitable%20Housing%20Final%20Rule%20for%20 Patrick McHenry (R-N.C.) called Gruenberg’s announcement
Web.pdf “too little, too late,” saying the FDIC chairman should resign
immediately. Senate Banking Committee Chairman Sherrod
Deposit Insurance Fund Reserve Brown (D-Ohio), in a statement earlier in the day, urged
Ratio Grew in Second Half of President Biden to nominate a new FDIC chair “who can lead the
2023 FDIC at this challenging time and for the Senate to act on that
nomination without delay.”

The Deposit Insurance Fund balance was $121.8 billion at the
end of 2023, up $4.8 billion since June 30 of that year, the FDIC
said in the first of its semiannual updates on the DIF restoration
plan. The DIF reserve ratio increased from 1.11% to 1.15%. The

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