FHFA releases updates reflecting COVID-19 impact on GSEs
The Federal Housing Finance Agency (FHFA) Monday issued its 2019 Report to Congress – outlining efforts to ensure safety and soundness within the housing market and the government-sponsored enterprises’ (GSEs) financial condition, as well as its response to the coronavirus pandemic – and a notification that it plans to re-propose minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers.
The FHFA had proposed the updated eligibility requirements at the end of January, which would also apply to servicing for Ginnie Mae mortgages and non-depository financial institutions. NAFCU met with the agency following the initial proposal to discuss what the requirements will mean for non-depository institutions.
While the FHFA planned to finalize the updated requirements in the second quarter of this year, the notification of re-proposal Monday said it determined “it is prudent to work with the Enterprises to reassess and re-propose these requirements, including incorporating lessons learned from the evolving COVID-19 national emergency.”
According to the agency, the updated requirements intend to strengthen the government-sponsored enterprises’ seller/servicer requirements, provide transparency and consistency of capital, and liquidity required for sellers/servicers with different business models.
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