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CHFA committee recommends bond underwriter slate, delays Wells Fargo as senior manager pending OCC action
Summary
The CHFA Finance/Audit Committee recommended a slate of bond underwriters for 2025–2027 but decided not to use Wells Fargo as a senior manager until CHFA is satisfied the bank addressed issues cited in an OCC enforcement action. The recommendation will go to the CHFA Board for consideration.
The Finance/Audit Committee of the Connecticut Housing Finance Authority on Sept. 26 recommended a slate of bond underwriters that would cover CHFA’s Housing Mortgage Finance Program Bonds, State-Supported Special Obligation Bonds and Housing Revenue Bonds for calendar years 2025–2027.
Hazim Taib, CHFA chief financial officer, told the committee that CHFA followed statute and its procedures by issuing a Request for Proposal for bond underwriters (the RFP is required every three years), and that staff received 28 proposals, including nine from new firms. Taib said staff, with CHFA’s financial advisor, reviewed and scored the responses and then outlined the recommended firms for each bond program.
Committee members raised concerns about a recent enforcement action by the Office of the Comptroller of the Currency (OCC) against Wells Fargo and asked how that risk affected the recommended slate. After discussion, the committee decided to keep Wells Fargo on the approved list as a senior manager for the Housing Mortgage Finance Program Bonds but to withhold using Wells Fargo as a senior manager until CHFA is satisfied the bank has addressed the issues cited by the OCC. Taib framed the decision as a modification to the resolution that preserves the firm on the approved list while delaying active senior-manager assignments.
Mr. Jorge Perez moved and Mr. Franklin Perry II seconded a motion to recommend the modified resolution to the CHFA Board of Directors; the committee voted unanimously to recommend it. The recommendation will be considered by the Board at a future meeting.
