FHFA - Federal Housing Finance Agency
09/14/2021 | Press release | Distributed by Public on 09/14/2021 14:26
FHFA and Treasury Suspending Certain Portions of the 2021 Preferred Stock Purchase Agre...
Washington, D.C. - Today, the Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury (Treasury) suspended certain provisions added to the Preferred Stock Purchase Agreements (PSPAs) with Fannie Mae and Freddie Mac (the Enterprises) on January 14, 2021.
'This suspension will provide FHFA time to review the extent to which these requirements are redundant or inconsistent with existing FHFA standards, policies, and directives that mandate sustainable lending standards,' said Acting Director Sandra L. Thompson.
FHFA will consult with Treasury on the scope of the review and on any recommended revisions to the PSPA requirements. The suspended provisions include limits on the Enterprises' cash windows (loans acquired for cash consideration), multifamily lending, loans with higher risk characteristics, and second homes and investment properties. The Enterprises will continue to build capital under the continuing provisions of the PSPAs. FHFA also continues to direct the Enterprises to operate in a safe and sound manner consistent with their statutory mission, and to foster resilient housing finance markets given prevailing housing market conditions, which include elevated demand relative to available inventory.
Additionally, FHFA is reviewing the Enterprise Regulatory Capital Framework and expects to announce further action in the near future.