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CHFA board names roster of bond underwriters and broker‑dealers, flags Wells Fargo oversight
Summary
The Connecticut Housing Finance Authority approved a slate of bond underwriters and broker‑dealer firms for its mortgage bond and MBS programs, while the mortgage committee said Wells Fargo remains on the list but will not act as a senior manager until regulatory concerns are addressed.
The Connecticut Housing Finance Authority’s Board of Directors on Sept. 26 unanimously approved a roster of bond underwriters and broker‑dealer firms to support CHFA’s single‑family and multifamily mortgage bond programs and certain state‑supported special obligation bonds. Chair Seila Mosquera‑Bruno called the roll and the board adopted the resolution by roll call vote.
Hazim Taib, the Authority’s chief financial officer, told the board the Mortgage Committee reviewed proposals from underwriting firms and recommended a slate of senior managers, co‑senior managers, co‑managers and re‑marketing agents. The approved senior managers list includes BofA Securities; Morgan Stanley; RBC Capital Markets; and Wells Fargo Bank, N.A., Municipal Finance Group. The board also approved separate lists of co‑senior managers, comanagers and re‑marketers and a roster of broker‑dealer firms eligible for CHFA’s TBA and specified mortgage‑backed securities sale programs.
Taib said the committee discussed a recent OCC enforcement action against Wells Fargo and concluded that Wells Fargo would remain on the approved list but would not be used as a book‑running senior manager until CHFA is satisfied the bank has addressed the OCC’s concerns. The resolution also authorizes the CEO or CFO to enter engagement or master forward transaction agreements with the approved firms for up to three years and requires firms to provide updated disclosures about investigations, legal proceedings and charitable contributions in Connecticut prior to participation in a bond issue.
The board separately approved a resolution authorizing broker‑dealer firms to act as placement agents, remarketing agents or intermediaries for CHFA’s bond and MBS programs and authorized the CEO or CFO to execute related master agreements, each for up to three years. Both resolutions include provisions allowing staff to change designations or assign firms as needed and to use negotiated sales for specified series.
The board’s action aims to ensure CHFA has a ready pool of market counterparties for negotiated bond sales and ongoing secondary market activities; the resolutions require firms to update regulatory and legal disclosures before participating in the 2024 Series N and Series M bond issues.
