On March 23, the FHFA authorized Fannie Mae and Freddie Mac to enter into additional dollar roll transactions, to support additional liquidity to investors of agency mortgage-backed securities. Release.
FHFA
FHFA Strengthens Evaluation Criteria for GSE’s Duty to Serve Program
On March 11, the Federal Housing Finance Agency (FHFA) issued revised guidance for evaluating Underserved Markets Plans submitted by Fannie Mae and Freddie Mac (the “GSEs”) for FHFA approval under the Duty to Serve regulation. The revised guidance strengthens the criteria for determining GSE compliance with the regulation, including through a revised ratings framework and higher expectations for impactful plans. Revised Guidance.
Fannie Mae and Freddie Mac Publish Joint Enterprise Credit Score Solicitation
On February 18, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the “Enterprises”) have published a Joint Credit Score Solicitation, which describes the process for credit score model developers to submit applications to the Enterprises. The publication of the solicitation in the process of evaluating new credit score models will ensure that the Enterprises validate and approve credit score models in a timely and prudent manner. Release.
Agencies Propose Amendments to Swap Margin Rule
Second Circuit Upholds Dismissal of U.S. Bank’s Untimely Breach of Contract and Indemnity Claims
On February 6, the Second Circuit affirmed a trial court order dismissing repurchase and indemnification claims brought by the Federal Housing Finance Agency (“FHFA“), acting on behalf of U.S. Bank as Trustee, against GreenPoint Mortgage Funding Inc., predicated on allegations that mortgage loans sold by GreenPoint breached representations and warranties in the relevant loan purchase agreements. READ MORE
FHFA Releases 2019 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions
On December 19, the Federal Housing Finance Agency (“FHFA”) published “…the 2019 Scorecard outlining specific conservatorship priorities for Fannie Mae, Freddie Mac [], and their joint venture, Common Securitization Solutions, LLC [].” Release.
FHFA Announces 2019 Multifamily Lending Caps for Fannie Mae and Freddie Mac
On November 6, the Federal Housing Finance Agency (“FHFA“) announced that the 2019 multifamily lending caps for Fannie Mae and Freddie Mac will be the same as the 2018 caps, $35 billion each. Release.
FHFA Issues Proposed Rule on Enterprise Capital
On June 12, 2018, the Federal Housing Finance Agency (“FHFA“) issued a proposed regulation on capital requirements for Fannie Mae and Freddie Mac (the Enterprises). The proposed rule would implement a new framework for risk-based capital requirements and a revised minimum leverage capital requirement for the Enterprises. FHFA suspended regulatory capital requirements after placing the Enterprises into conservatorships in September 2008 and the capital requirements in this rule would also be suspended while the Enterprises remain in conservatorship. Comments on this proposal will be accepted for 60 days after publication in the Federal Register. Press Release. Proposed Rule. Fact Sheet.
FHFA Issues New Prepayment Monitoring Report
On May 22, 2018, the Federal Housing Finance Agency (“FHFA“) issued a report through first quarter of 2018 in order to provide transparency and insight to market participants about how it monitors prepayment rates of Fannie Mae and Freddie Mac. Release
FHFA Issues Final Rule on Fannie Mae and Freddie Mac Duty to Serve Underserved Markets
On December 13, 2016, the Federal Housing Finance Agency (FHFA) issued a final rule implementing the Duty to Serve provisions mandated by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008 (HERA). The statute established a duty for Fannie Mae and Freddie Mac to serve three underserved markets: manufactured housing, affordable housing preservation and rural housing. The intent of the provisions is to increase the liquidity of mortgage investments and improve distribution of investment capital available for mortgage financing for very low-, low- and moderate-income families in the manufactured housing, affordable housing preservation and rural housing markets. Press Release. Final Rule.