Federal Home Loan Banks

FHFA Instructs Federal Home Loan Banks to Transition Away From Purchase of LIBOR-Tied Assets

 

On September 27, the Federal Housing Finance Agency (FHFA) instructed the Federal Home Loan Banks to stop practice of purchasing any investments with assets tied to LIBOR with maturities beyond December 31, 2021, as part of the transition away from LIBOR. As of March 31, 2020, according to the FHFA policy, Federal Home Loan Banks will be restricted from entering into all other LIBOR-based transactions, subject to certain limited exceptions. Release.

FHFA Anti-Fraud Measures for Fannie, Freddie and Federal Home Loan Banks

On June 18, the FHFA announced the Suspended Counterparty Program, an initiative to require Fannie Mae, Freddie Mac and the Federal Home Loan Banks to notify the FHFA whenever an individual or company with whom they do business is adjudicated to have engaged in fraud or other financial misconduct. The FHFA will determine whether the individual or company should be suspended from doing business with Fannie Mae, Freddie Mac or the Federal Home Loan Banks. The program becomes effective on August 15. FHFA Release.

New York Court Grants Investors’ Petitions to Intervene In Proposed $8.5 Billion Bank Of America Settlement

On August 19, 2011, New York Supreme Court Judge Barbara Kapnick granted the petitions to intervene by various investors, including Walnut Place LLC and affiliates, various pension funds, several Federal Home Loan Banks, and several insurance companies, in the proposed $8.5 billion settlement agreement between Bank of New York Mellon, as Trustee on behalf of holders of Countrywide Financial Corp.’s mortgage-backed securities, and Bank of America. As a result of this decision, these intervening entities will now participate in the settlement proceedings. New York Attorney General Eric Schneiderman’s motion to intervene is still pending. Decision.

FHFA Proposed Rule on Private Transfer Fee Covenants

On February 1, the FHFA released a proposed rule which would limit Fannie Mae, Freddie Mac, and the Federal Home Loan Banks from dealing in mortgages with certain private transfer fee covenants and in certain related securities. The rule would generally apply only to private transfer fee covenants created on or after the date of publication of the proposed rule. Regulated entities will be required to comply with the final rule within 120 days of its publication. Comments on the proposed rule must be submitted within 60 days after publication in the Federal Register. FHFA Release. FHFA Proposed Rule.

FHFA Rules and ANPR for GSEs

On December 22, the FHFA issued three final rules and one Advance Notice of Proposed Rulemaking for Fannie Mae, Freddie Mac and the Federal Home Loan Banks. The final rules pertain to Fannie Mae and Freddie Mac portfolio holdings, minority and women inclusion, and Federal Home Loan Bank housing goals. The ANPR pertains to membership in Federal Home Loan Banks. FHFA Release.

FHFA Proposed Rule on Fannie, Freddie and FHLB Conservatorship

On July 6, the FHFA announced a proposed rule to codify the terms of conservatorship and receivership operations for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks, pursuant to the Housing and Economic Recovery Act of 2008.  Comments to the proposed rule may be submitted no later than 60 days after date of publication in the Federal Register. Release. Proposed Rule.