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FHFA's Update on Private Label Securities Actions11066<p>​​​​In 2011, the Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in the sale of private-label securities (PLS) to Fannie Mae and Freddie Mac.&#160;​ Below is a list of the cases, with amounts of any settlements reached in 2013 and 2014.&#160; Settlement amounts result from various factors, including statutory requirements, number of securities, unique circumstances of each matter and litigation risks. </p><table width="100%" class="ms-rteTable-6" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-6" style="text-align&#58;center;"><td class="ms-rteTableEvenCol-6" colspan="2"> <strong>​PLS Litigation Settlements ​</strong> </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​1. General Electric Company </td><td width="25%" class="ms-rteTableOddCol-6">$6.25 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">2. CitiGroup Inc. </td><td class="ms-rteTableOddCol-6">​$250 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​3. UBS Americas, Inc. (Union Bank of Switzerland) </td><td class="ms-rteTableOddCol-6">​$885 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">​4. J.P. Morgan Chase &amp; Co. </td><td class="ms-rteTableOddCol-6">​$4 billion </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">​5. Deutsche Bank AG </td><td class="ms-rteTableOddCol-6">$1.925 billion </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">6. Ally Financial, Inc. </td><td class="ms-rteTableOddCol-6">$475 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6">7. Morgan Stanley </td><td class="ms-rteTableOddCol-6">$1.25 billion </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6">8. SG Americas (Societe Generale) </td><td class="ms-rteTableOddCol-6">$122 million </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">9. Credit Suisse Holdings (USA) Inc. </td><td class="ms-rteTableOddCol-6" rowspan="1">$885 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">10. Bank of America Corp. <br>11. Merrill Lynch &amp; Co. <br>12. Countrywide Financial Corporation </td><td class="ms-rteTableOddCol-6" rowspan="1"> <br>$5.83 billion </td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​13. Barclays Bank PLC </td><td class="ms-rteTableOddCol-6" rowspan="1">$280 million </td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​14. First Horizon National Corp.</td><td class="ms-rteTableOddCol-6" rowspan="1">​$110 million</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​15. RBS Securities, Inc.&#160;<span style="line-height&#58;14px;font-style&#58;normal;font-variant&#58;normal;background-color&#58;#c0e4ff;">(in Ally action)</span></td><td class="ms-rteTableOddCol-6" rowspan="1">​​$99.5 million</td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​16. Goldman Sachs &amp; Co.</td><td class="ms-rteTableOddCol-6" rowspan="1">​$1.2 billion</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" rowspan="1">​17. HSBC North America Holdings, Inc.&#160;(Hong Kong Shanghai Banking Corp.)</td><td class="ms-rteTableOddCol-6" rowspan="1">​​$550 million</td></tr></tbody></table><p>&#160;</p><table width="100%" class="ms-rteTable-6 " cellspacing="0" style="height&#58;57px;"><tbody><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2" style="width&#58;788px;height&#58;15px;text-align&#58;center;">​<strong>​​Non-Litigation PLS Settlements​</strong></td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" style="width&#58;591px;">​Wells Fargo Bank, N.A.</td><td class="ms-rteTableOddCol-6" style="width&#58;197px;">​$335.23 million</td></tr></tbody></table><p>&#160;</p><table width="100%" class="ms-rteTable-6" cellspacing="0"><tbody><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2" style="width&#58;50%;text-align&#58;center;">​<strong>Remaining PLS Cases ​</strong> ​ ​</td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" colspan="2">​<em>Southern District of New York Cases</em>&#58; ​</td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2"> *Nomura Holding America, Inc.&#160; <p>*Case litigated in spring 2015, FHFA prevailed, now on appeal to United States Court of Appeals for the Second Circuit.</p></td></tr><tr class="ms-rteTableOddRow-6"><td class="ms-rteTableEvenCol-6" colspan="2"> <em>​​District of Connecticut Case&#58;</em></td></tr><tr class="ms-rteTableEvenRow-6"><td class="ms-rteTableEvenCol-6" colspan="2">The Royal Bank of Scotland Group, PLC&#160; ​</td></tr></tbody></table>1/4/2016 8:06:27 PM12839http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Proposed Rule On Fannie Mae & Freddie Mac Duty to Serve Underserved Markets14787<h4>Background</h4><p></p><p>On December 15, 2015, FHFA issued a proposed rule on Fannie Mae and Freddie Mac Duty to Serve Underserved Markets.</p><p>The public comment period is 90 days from publication in the Federal Register.</p><p>FHFA invites comments on all aspects of the proposed rule.</p><p>FHFA issued an Advance Notice of Proposed Rulemaking in 2009 and a&#160;<span style="line-height&#58;22px;">Notice of Proposed Rulemaking in 2010 but&#160;</span><span style="line-height&#58;22px;">did not complete the rulemaking process.</span></p><h4>Summary</h4><p><strong>​Statutory Requirement&#160;<br></strong><span style="line-height&#58;22px;">Federal law requires the Federal Housing Finance Agency (FHFA) to issue a regulation to implement the Duty to Serve requirements specified in the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by the Housing and Economic Recovery Act of 2008. &#160;The statute requires Fannie Mae and Freddie Mac (the Enterprises) to provide leadership to facilitate a secondary market for mortgages on housing for very low-, low-, and moderate-income families in three underserved markets specified in the statute&#58;</span></p><ul><li><span style="line-height&#58;22px;">Manufactured housing</span><br></li><li><span style="line-height&#58;22px;">Af</span><span style="line-height&#58;22px;">fordable housing preservation&#160;</span><br></li><li><span style="line-height&#58;22px;">Rural housing</span><br></li></ul><p>FHFA has issued a proposed rule that seeks to strike a balance between the requirement that the Enterprises serve families in these markets and their continued safety and soundness.</p><div><p><strong>Underserved Markets Plans&#160;</strong><br><span style="line-height&#58;22px;">Under the proposed rule, the Enterprises would each be required to submit to FHFA a draft Underserved Markets Plan covering a three-yea</span><span style="line-height&#58;22px;">r period, and the public would be invited to provide input on the draft Plans. &#160;The draft Plans would be posted on FHFA’s website, and the final Plans would be posted on the Enterprises’ and FHFA’s respective websites. &#160;</span></p><p>The Plans would comprise “<strong>Activities</strong><strong>,</strong>” including <strong>Core Activities</strong> that the Enterprises would be required to consider in developing their Plans. &#160;The Core Activities represent nine categories of <strong>Statutory Activities </strong>and eleven categories of <strong>Regulatory Activities</strong> developed by FHFA. &#160;The Enterprises could also propose <strong>Additional Activities </strong>in their Plans. &#160;Eligible Activities would receive Duty to Serve credit (scoring points). &#160;If Fannie Mae or Freddie Mac decides not to include a Core Activity in its Plan, it would be required to provide reasons why in the Plan.&#160;</p><p>FHFA would also provide Duty to Serve credit for Fannie Mae or Freddie Mac activities that promote residential economic diversity in an underserved market for affordable housing in high opportunity areas or mixed-income housing in areas of concentrated poverty.</p><div><p><strong>Manufactured Housing</strong><br><span style="line-height&#58;22px;">For the manufactured housing market, Duty to Serve credit would be provided for Regulatory Activities that Fannie Mae and Freddie Mac undertake related to financing manufactured housing units titled as real estate and not “chattel” loans secured by personal property, because real estate loans perform better, have greater borrower protections, and have lower default rates than chattel financing. &#160;However, the proposed rule invites public comment on whether the final rule should authorize Duty to Serve credit for the purchase of chattel loans. &#160;</span></p><p>Under the proposed rule, Fannie Mae and Freddie Mac would also be required to consider undertaking Regulatory Activities related to purchasing blanket loans on the following types of manufactured housing communities&#58; &#160;small communities with 150 rental sites or fewer; communities owned by their residents, nonprofits or governmental agencies; and communities where tenants’ site leases include certain tenant protections.</p><p><strong>Affordable Housing Preservation</strong><br><span style="line-height&#58;22px;">For affordable housing preservation, Duty to Serve credit would be provided for Statutory Activities that Fannie Mae and Freddie Mac undertake related to preservation of affordable housing funded under the following programs enumerated in the statute&#58; &#160;</span></p><ul><li><span style="line-height&#58;22px;">U.S. Department of Housing &amp; Urban Development (HUD) Section 8 Rental Assistance Program;</span><br></li><li><span style="line-height&#58;22px;">HUD Section 236 Interest Rate Subsidy Program;</span><br></li><li><span style="line-height&#58;22px;">HUD Section 221(d)(4) FHA Insurance Program;</span><br></li><li><span style="line-height&#58;22px;">HUD Section 202 Housing Program for Elderly Households;</span><br></li><li><span style="line-height&#58;22px;">HUD Section 811 Housing Program for Disabled Households;</span><br></li><li><span style="line-height&#58;22px;">McKinney-Vento Homeless Assistance Programs;</span><br></li><li><span style="line-height&#58;22px;">USDA Section 515 Rural Housing Programs;</span><br></li><li><span style="line-height&#58;22px;">Federal Low-Income Housing Tax Credits; and</span><br></li><li><span style="line-height&#58;22px;">Other comparable state and local affordable housing programs.</span><br></li></ul><p>Duty to Serve credit would also be provided for Regulatory Activities that Fannie Mae and Freddie Mac undertake related to purchasing loan pools from small banks and community-based lenders on small multifamily rental properties of 5 to 50 units; Activities related to public housing properties that use HUD’s Rental Assistance Demonstration Program; Activities related to properties in designated areas under HUD’s Choice Neighborhoods Initiatives Program; purchasing energy efficiency retrofit loans on multifamily rental properties; and purchasing energy retrofit loans on single-family properties with Fannie Mae or Freddie Mac first mortgage liens.</p><p>Fannie Mae and Freddie Mac would also be required to consider undertaking Regulatory Activities that support preserving affordable homeownership for single-family properties under shared equity programs that are administered by a community land trust, a nonprofit organization or a state or local governmental agency. &#160;Eligible shared equity programs must ensure affordability for 30 years -- or longer if permitted by state law, monitor the units to ensure affordability is preserved over resales, and support the homeowners to promote successful homeownership.</p><p><strong>Rural Housing</strong><br><span style="line-height&#58;22px;">For the rural housing market, Duty to Serve credit would be provided for Activities that serve rural areas generally. &#160;Duty to Serve credit would also be provided for Regulatory Activities supporting housing in high-needs rural regions, defined as Middle Appalachia, the Lower Mississippi Delta region, and colonias, which are communities located primarily within 150 miles of the U.S.-Mexico border in Arizona, New Mexico, Texas, or California; and Activities supporting housing for high-needs rural populations defined as members of a Federally recognized Native American tribe located in a Native American area, or migrant or seasonal agricultural workers, as defined in the proposed rule. &#160;The proposed rule would define a “rural area” as a census tract outside of a Metropolitan Statistical Area (MSA) as designated by the Office of Management and Budget, or a census tract in an MSA, but outside of the MSA’s Urbanized Areas and Urban Clusters, as designated by the U.S. Department of Agriculture’s Rural Urban Commuting Area codes.</span></p><p><strong>​Evaluations and Ratings</strong><br><span style="line-height&#58;22px;">FHFA would annually evaluate and rate Fannie Mae and Freddie Mac’s performance under their Underserved Markets Plans by allocating points for each Activity performed and translating the composite scores to overall ratings for each of the three underserved markets. &#160;FHFA would report those results to Congress on an annual basis.&#160;</span></p><p><a href="/Media/PublicAffairs/Pages/FHFA-Issues-Proposed-Rule-on-Fannie-Mae-and-Freddie-Mac-Duty-to-Serve-Underserved-Markets.aspx">Related&#160;News Release</a>​</p></div></div>12/15/2015 4:30:53 PM1755http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Neighborhood Stabilization Initiative Program Expansion Fact Sheet19069<p>​<strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;">​​​​​NSI Pilots – Background</strong></p><p>​The Neighborhood Stabilization Initiative (NSI) was jointly developed by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac to stabilize neighborhoods that were hardest hit by the housing downturn and reduce the inventory of real estate owned (REO) properties held by Fannie Mae and Freddie Mac. NSI began as a pilot program in the city limits of Detroit, Michigan in May 2014 and was expanded to Cook County, Illinois in April 2015. </p><p>Fannie Mae and Freddie Mac will continue to work with the <a href="http&#58;//www.stabilizationtrust.com/" target="_blank">National Community Stabilization Trust (NCST)​</a>, a national nonprofit organization experienced in stabilization efforts for distressed communities. NCST has ties to community organizations and local nonprofits that have a vested interest in their communities.</p><p> <strong>NSI Pilots – Lessons Learned</strong></p><ul><li> <span style="line-height&#58;22px;">Critical for success are partnerships with local community buyers and the exclusive opportunity for these buyers to purchase REO properties prior to Fannie Mae and Freddie Mac listing them for retail sale.</span><br></li><li> <span style="line-height&#58;22px;">The </span> <strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;"> <em>Enhanced First Look </em></strong> <span style="line-height&#58;22px;">process is an effective tool to responsibly dispose of REO properties and stabilize n</span><span style="line-height&#58;22px;">eighborhoods.</span><br></li><li> <span style="line-height&#58;22px;">Expansion of NSI to multiple cities at one time benefits hardest hit communities most quickly and achieves maximum effectiveness vs. city-by-city expansion.&#160;</span><span style="line-height&#58;22px;">​</span><br></li></ul><p> <strong>NSI Expansion – Program Elements</strong></p><p>Building on the lessons learned from the Detroit and Cook County pilots, Fannie Mae and Freddie Mac will partner with NCST to expand NSI to 18 different metropolitan statistical areas (MSAs) with high volumes of low-value REO inventory. The expanded NSI program is effective beginning December 1, 2015. </p><p>NSI expansion focuses on REO properties and capitalizes on the <strong> <em>Enhanced First Look </em></strong>principles utilized in Detroit and Cook County. Fannie Mae and Freddie Mac foreclosed properties that have not been listed for public sale on or after December 1, 2015 will be presented to eligible NCST community buyers for purchase review. NCST buyers will have up to 12 business days to express interest in a property and agree on a price before the property is made publicly available for purchase. During this <strong> <em>Enhanced First Look </em></strong>period, NCST community buyers evaluate the property and determine whether they wish to purchase the property for sale or rent, or, in some cases, for demolition. Single family structures, including condominiums, town homes, and 2-4 unit properties, are eligible for <strong> <em>Enhanced First Look</em></strong>. </p><p>The sales price for properties offered during <strong> <em>Enhanced First Look </em></strong>will reflect fair market values that take into account savings in marketing, upkeep, utilities, and taxes – all costs Fannie Mae and Freddie Mac would have paid if the property sold during standard REO inventory disposition, rather than through the <strong> <em>Enhanced First Look </em></strong>process. Fannie Mae and Freddie Mac may also contribute funds for demolition of certain properties, based on market costs.</p> <font color="#000000" face="Times New Roman" size="3"> </font> <p style="margin&#58;0in 0in 0pt;"><span style="color&#58;#404040;font-family&#58;arial, sans-serif;font-size&#58;10.5pt;"><span></span><strong>NSI Expansion –&#160;Key Elements</strong></span></p><ul><li><p>Fannie Mae and Freddie Mac will work with NCST. </p></li><li><p>NCST community buyers have exclusive opportunity to buy foreclosed properties prior to being listed for sale to the public. </p></li><li><p>Properties will be sold at fair market value, which includes discounts for expenses saved through a quicker sale. </p></li><li><p>Expansion will be in 18 selected MSAs simultaneously.</p></li></ul><p style="margin&#58;0in 0in 0pt;"><span style="color&#58;#404040;font-family&#58;arial, sans-serif;font-size&#58;10.5pt;"></span> </p><p> <strong>NSI Expansion – Selected Markets</strong></p><p>The selection of markets for NSI expansion was based on MSAs where Fannie Mae and Freddie Mac each had at least 100 REO properties valued at less than $75,000. However, once expansion of NSI is in effect, properties in these MSAs valued up to $175,000 will be eligible for the program. Below is an <a href="/PolicyProgramsResearch/Programs/Pages/NSI-Expansion-Map.aspx" target="_blank">interactive map</a> indicating each of the 18 MSAs included in the NSI expansion.</p><p style="text-align&#58;center;"> <a href="/PolicyProgramsResearch/Programs/Pages/NSI-Expansion-Map.aspx" target="_blank"><img class="ms-rtePosition-4" src="/PolicyProgramsResearch/Programs/PublishingImages/Pages/Neighborhood-Stabilization-Initiative-(NSI)/NSI_Expansion_Map_092015.png" alt="" style="margin&#58;5px;width&#58;700px;" /></a>&#160;</p><p><br>&#160;</p><p style="text-decoration&#58;underline;">​<strong>List of Selected MSAs</strong> <br></p><table class="ms-rteTable-0" cellspacing="0" style="width&#58;100%;height&#58;250px;"><tbody><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0" style="width&#58;33.33%;"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Akron, OH</span><br></li></ul></td><td class="ms-rteTableOddCol-0" style="width&#58;33.33%;"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Atlanta-Sandy Springs-Roswell, GA</span><br></li></ul></td><td class="ms-rteTableEvenCol-0" style="width&#58;33.33%;"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Baltimore-Columbia-Towson, MD</span><br></li></ul></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Chicago-Naperville-Elgin, IL​</span><br></li></ul></td><td class="ms-rteTableOddCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Cinc</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">innati, OH-KY-IN</span><br></li></ul></td><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Cleveland-Elyria, OH</span><br></li></ul></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Columbus, OH</span><br></li></ul></td><td class="ms-rteTableOddCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Dayton, OH</span><br></li></ul></td><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Detroit-Warren-Dearborn, MI</span><br></li></ul></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​Jackson</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">ville, FL</span><br></li></ul></td><td class="ms-rteTableOddCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Miami-Fort Lauderdale-West Palm Beach, FL</span><br></li></ul></td><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">New York-Newark-Jersey City, NY-NJ-PA</span><br></li></ul></td></tr><tr class="ms-rteTableEvenRow-0"><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Orlando-Kiss</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">immee-Sanford, FL</span><br></li></ul></td><td class="ms-rteTableOddCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Philadelphia-Camden-Wilmington, PA-NJ-DE</span><br></li></ul></td><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Pittsburgh, PA</span><br></li></ul></td></tr><tr class="ms-rteTableOddRow-0"><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">St. Louis,</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;"> M</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">O</span><br></li></ul></td><td class="ms-rteTableOddCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Tampa-St. Petersburg-Clearwater, FL</span><br></li></ul></td><td class="ms-rteTableEvenCol-0"><ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">Toledo, OH</span><br>​</li></ul></td></tr></tbody></table><p>The number of REO properties owned by Fannie Mae and Freddie Mac is declining and approaching pre-crisis levels in some states. At the national level, the REO inventory of Fannie Mae and Freddie Mac has declined from its 3Q10 peak of nearly 250,000 properties to roughly 77,000 as of 3Q15, as dispositions outpace acquisitions. However, in some areas of the country REO inventory continues to increase or remains elevated. Some particular markets have large concentrations of distressed and low-value REO properties. </p><font color="#000000" face="Times New Roman" size="3"> </font><p>Given the unique challenges presented by these markets, Fannie Mae and Freddie Mac partnered with NCST to leverage their ties to “boots on the ground” community organizations and local nonprofits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.</p><p><a href="/Media/PublicAffairs/Pages/FHFA-Announces-Expansion-of-Neighborhood-Stabilization-Initiative.aspx">Related News Release</a></p><font color="#000000" face="Times New Roman" size="3"> </font>11/13/2015 5:20:06 PM2466http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Results of Fannie Mae and Freddie Mac Guarantee Fee Review17707<p> <span style="line-height&#58;22px;text-decoration&#58;underline;"><strong>​​​Summary</strong></span><span style="line-height&#58;22px;"> – The Federal Housing Finance Agency (FHFA) has completed a comprehensive review of the agency's policy for guarantee fees charged by Fannie Mae and Freddie Mac (the Enterprises).</span><span style="line-height&#58;22px;">&#160; </span> <span style="line-height&#58;22px;">FHFA's review considered multiple factors, including responses to the agency's June 2014 request for public input, analyses by housing finance market participants of the implied guarantee fee pricing from the Enterprises' credit risk transfers, and internal analyses of Enterprise pricing, credit guarantee loss data, and modeling.</span></p><p>FHFA's review focused on reaching an appropriate balance between FHFA's statutory obligations to&#58; 1) ensure the safety and soundness of the Enterprises, and 2) foster a liquid national housing finance market.&#160; In light of this balance, FHFA determined, based on both internal and external analysis, that the current average level of guarantee fees appropriately reflects the current costs and risks associated with providing the Enterprises' credit guarantee.&#160; </p><p>As a result, FHFA finds no compelling economic reason to change the general level of fees.&#160; FHFA, however, is making certain minor and targeted fee adjustments.&#160; To implement these decisions, the agency is directing the Enterprises to make changes to their guarantee fees that will slightly reduce, maintain, or increase costs for different categories of loans.&#160; Since all of the guarantee fee changes are small, the agency does not expect the adjustments to cause any material changes to the Enterprises' loan volume in any of the loan categories and expects the small changes to be revenue neutral.</p><p>The guarantee fee adjustments directed by FHFA fall into two categories&#58;</p> <span style="line-height&#58;16px;"> <ul><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">First, </span> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">the foundational adjustment is removing the 25 basis point upfront adverse market charge.</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">&#160; </span> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">The Enterprises established this fee in 2008 as an on-top pricing increase to reflect the unfavorable condition of the national housing market at that time.</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">&#160; </span> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">FHFA believes it is appropriate to remove this housing crisis-era fee in light of improvements in the housing markets.</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">&#160; The agency is also setting aside its December 2013 decision to retain the adverse market charge in certain states with higher than average foreclosure related costs.</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;22px;">&#160;</span><br></li><li> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">Second, </span> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">the agency is applying targeted and small fee adjustments to a subset of Enterprise loans.</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">&#160; </span> <span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">This includes small fee increases for certain loans in the Enterprises' upfront loan-to-value (LTV) ratio/credit score pricing grid and for certain loans with risk-layering attributes (i.e., cash-out refinances, i</span><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;line-height&#58;16px;">nvestment properties, loans with secondary financing, and jumbo conforming loans).</span><br></li></ul></span> <p> <span style="text-decoration&#58;underline;"><strong>How the Enterprises Determine Guarantee Fees</strong></span> – The Enterprises acquire single-family loans from lenders and securitize them in the form of mortgage-backed securities (MBS).&#160; For investor-held MBS, the Enterprises guarantee timely payment of principal and interest to the investor.&#160; Guarantee fees cover three cost components that the Enterprises expect to incur in providing their guarantee.&#160; They are&#58; 1) the expected costs that result from the failure of some borrowers to make their payments; 2) the cost of holding the modeled capital amount necessary to protect against potentially much larger unexpected losses that result from the failure of some borrowers to make their payments in a severe stress environment; and 3) general and administrative expenses.&#160; Collectively, these costs comprise the estimated cost of providing the credit guarantee.</p><p>Of these three components, the second (cost of capital) is by far the most significant.&#160; Despite the Enterprises' inability to retain capital under the Senior Preferred Stock Purchase Agreements (PSPAs) entered into with the U.S. Department of the Treasury in 2008, FHFA has established guarantee fee levels consistent with the amount of capital the Enterprises would need to support their guarantee businesses if they were not in conservatorship and retained capital.&#160; </p><p> <span style="text-decoration&#58;underline;"> <strong>How Guarantee Fees Impact Borrowers</strong></span> – As compensation for providing the guarantee on MBS, the Enterprises charge lenders guarantee fees.&#160; &#160;The Enterprises charge lenders a base, or ongoing, fee that is primarily based on the product type (e.g., 30-year Fixed Rate, 15-year Fixed Rate, 5/1 ARM).&#160; The Enterprises also charge upfront guarantee fees, also known as loan level pricing adjustments (LLPAs) or delivery fees, that are based on certain risk attributes of the borrower or the loans (e.g., LTV/credit-score grid, cash-out refinance, investor properties, secondary financing at origination, jumbo conforming loan).&#160; While the Enterprises assess LLPAs or delivery fees as an upfront fee, most lenders convert them into the interest rate on the mortgage, which the borrowers pay over time, like ongoing guarantee fees.[1]&#160;Together, ongoing guarantee fees and LLPAs/delivery fees make up the Enterprises' total compensation for providing the credit guarantee.&#160; In addition, since 2008, each Enterprise has assessed an adverse market charge as a surcharge for challenging housing market conditions.</p><p> <span style="text-decoration&#58;underline;"><strong>FHFA Review of Capital Adequacy</strong></span> – In performing its review of guarantee fees, FHFA evaluated appropriate levels of required capital and target rates of return.&#160; In doing so, the agency reviewed Fannie Mae and Freddie Mac's capital and credit models.&#160; FHFA also independently compared the Enterprises' most recent loan acquisition profile with the actual losses experienced on similar loans from the recent crisis.&#160; </p><p>In addition, the agency considered analytical reports by firms in the financial services industry about the Enterprises' credit risk transfer transactions.&#160; The reports assess the implied level of guarantee fees based on the pricing of an early 2015 Freddie Mac credit risk transfer (STACR) transaction, and most conclude that the Enterprises' current level of fees is appropriate.&#160; Similarly, some public response letters and industry reports, which are based on the respondents' own capital and rate of return assumptions, asked FHFA to either maintain or modestly lower guarantee fees from their current levels.</p><p>As a result of FHFA's review of guarantee fee levels, the agency concludes that the current guarantee fee level is appropriate under current circumstances.</p><p> <span style="text-decoration&#58;underline;"><strong>Elimination of the Adverse Market Charge</strong></span> – Each Enterprise instituted an adverse market charge in 2008 to compensate for their credit risk models not adequately assessing the extra costs and risks from the difficult market conditions and declining house prices at that time.&#160; That justification no longer applies.&#160; The housing market has improved significantly in recent years, and the Enterprises' credit risk models now incorporate the experience of the recent crisis.</p><p>As described above, FHFA's analysis concludes that the current average level of guarantee fees is appropriate based on current assessments of cost and risk. &#160;Because these average guarantee fees currently include the adverse market charge, removing this fee component necessitates other guarantee fee adjustments.&#160; As a result, FHFA is directing the Enterprises to replace the revenue attributable to the adverse market charge with targeted changes in fees that address various risk-based and access-to-credit considerations.&#160; Overall, FHFA expects these changes to be revenue neutral to the Enterprises based on their recent mix of business.</p><p> <span style="text-decoration&#58;underline;"><strong>Set Aside of State-Level Pricing</strong></span> – When FHFA announced its decision to eliminate the adverse market charge in December 2013, the elimination was for all states except Connecticut, Florida, New Jersey, and New York.&#160; The adverse market charge would have been unchanged in those four states to compensate, approximately, for the difference in the foreclosure timeline related costs relative to average costs across the country.&#160; </p><p>Although foreclosure costs are significantly higher in these four states compared to other states, the agency is setting aside the previous decision to implement these geographically based fees.&#160; FHFA will explore opportunities to engage with states to better understand the reasons for longer foreclosure timelines and to share with sta​tes the cost implications to the Enterprises as well as potential impacts to borrowers.&#160; At the same time, FHFA will continue to work toward finding an appropriate balance between allowing sufficient time for borrowers to obtain loss mitigation alternatives and ensuring timely resolution of foreclosures. </p><p> <span style="text-decoration&#58;underline;"> <strong>Targeted Fee Adjustments</strong></span> – The decision to eliminate the adverse market charge yet maintain the overall average level of guarantee fees required a plan to recover this revenue.&#160; The set of targeted adjustments to guarantee fees described below only apply to the Enterprises' upfront fees and do not affect base, ongoing guarantee fees.&#160; The fee changes will become effective for loans delivered to the Enterprises beginning on September 1, 2015.&#160; The agency does not expect a material change in the Enterprises' loan volume as a result of these changes.</p><p>The targeted fee adjustments include the following categories&#58;</p><ul><li> <span style="text-decoration&#58;underline;"><strong>LTV/Credit Score Grid</strong></span> – In the Enterprises' LTV/credit score grids, which apply to loans with terms exceeding 15 years, FHFA is directing the Enterprises to increase the upfront fees by 25 basis points for loans that have both an LTV ratio of 80 percent or less and credit-score of 700 or more.[2]&#160;&#160;</li></ul><p>For loans that have an LTV ratio above 80 percent or a credit score below 700, FHFA is generally leaving the upfront fees the same.[3]&#160;As a result, these loans will receive the full benefit of the 25 basis point adverse market charge elimination.&#160; Contributing to the determination to leave the upfront fees the same for this LTV/credit score group is FHFA's separate action to finalize new standards for mortgage insurers – Private Mortgage Insurer Eligibility Requirements (PMIERs).&#160; Loans with less than a 20 percent down payment are required to have credit enhancement, which lenders typically satisfy with private mortgage insurance.&#160; FHFA anticipates that the finalized PMIERs will provide a modest cost savings to the Enterprises from reduced mortgage insurer counterparty exposure.</p><ul><li> <span style="text-decoration&#58;underline;"><strong>Cash-Out Refinances, Investment Properties, and Loans with Secondary Financing</strong></span> FHFA is directing the Enterprises to increase guarantee fees on certain higher-risk loan types to improve risk-based pricing.&#160; Specifically, the agency is increasing fees by 37.5 basis points on cash-out refinances, investment properties, and loans with simultaneous secondary financing. &#160;Consistent with the practice today, when a loan falls into more than one category (e.g., both a cash-out refinance and investment property), the add-on fees are cumulative, which results in the net increase in those cases being higher than 37.5 basis points.[4]&#160;</li><li> <span style="line-height&#58;16px;text-decoration&#58;underline;"><strong>Jumbo Conforming Loans</strong></span><span style="line-height&#58;16px;"> </span> <span style="line-height&#58;16px;">–</span><span style="line-height&#58;16px;"> FHFA is directing the Enterprises to increase the fee on jumbo conforming loans (over $417,000) by 25 basis points.</span><span style="line-height&#58;16px;">&#160; </span> <span style="line-height&#58;16px;">Congress allowed the Enterprises to acquire these higher balance loans in certain high cost areas of the country in response to the housing crisis.</span><br></li></ul><p> <span style="text-decoration&#58;underline;"><strong>Ongoing Safety and Soundness Oversight</strong></span><strong> </strong>– As part of our ongoing oversight of the Enterprises, FHFA collects data on new loan acquisitions, monitors changes in the composition of loan purchases, evaluates quality control activities, and assesses the implications of these and other factors for risk to the Enterprises and their level of guarantee fees.&#160; Since FHFA recognizes that market conditions affecting mortgage credit risk will change over time, the agency will continue to conduct these oversight activities.&#160; Should FHFA determine in the future that market conditions necessitate adjustments in guarantee fees to sustain the safety and soundness of the Enterprises, FHFA will provide sufficient advance notice before the effective date of any such changes.</p><p> <span style="text-decoration&#58;underline;"><strong>Upfront Fee Schedules</strong></span> – The Fannie Mae and Freddie Mac upfront fee schedules are available at the following URLs&#58;</p><p><a href="https&#58;//www.fanniemae.com/content/pricing/llpa-matrix.pdf">https&#58;//www.fanniemae.com/content/pricing/llpa-matrix.pdf</a></p><p><a href="https&#58;//www.fanniemae.com/content/pricing/llpa-matrix-refi-plus.pdf">https&#58;//www.fanniemae.com/content/pricing/llpa-matrix-refi-plus.pdf</a></p><p>​<a href="http&#58;//www.freddiemac.com/singlefamily/pdf/ex19.pdf">http&#58;//www.freddiemac.com/singlefamily/pdf/ex19.pdf</a></p><p>​Footnotes&#58;&#160;&#160;​</p><p><span style="line-height&#58;22px;">[1]&#160;As an example, the 25 basis point upfront adverse market charge is approximately equivalent to 5 basis points ongoing mortgage rate (or 0.05%).</span><span style="line-height&#58;22px;">&#160;</span><br></p><p>[2] Small exceptions&#58; 1) the upfront fee is not being changed for one loan group (61-70% LTV/700-719 credit score), and 2) Fannie Mae is increasing upfront fees by 25 basis points for three additional loan groups (71-75% LTV/660-679 credit score, 76-80% LTV/660-679 credit score, 71-75% LTV/640-659 credit score) to align their pricing with Freddie Mac.</p><p>[3] See footnote 2 for certain technical exceptions.</p><p><span style="line-height&#58;22px;">[4]&#160;There are a few exceptions to this cumulative add-on practice.&#160;</span></p>4/17/2015 8:15:50 PM10430http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Cook County, Illinois Neighborhood Stabilization Initiative Fact Sheet 17694<p>​​The Neighborhood Stabilization Initiative (NSI) was jointly developed by the Federal Housing Finance Agency (FHFA) and Fannie Mae and Freddie Mac.&#160; It is a pilot program designed to stabilize neighborhoods that have been hardest hit by the housing downturn by improving upon existing strategies to <strong><em>help delinquent borrowers avoid foreclosure</em></strong> and creating a more efficient <strong><em>disposition path for foreclosed properties</em></strong>.&#160; These strategies reflect input from local housing groups, non-profits and government officials and have been tailored to address the unique circumstances of the Cook County, Illinois market.&#160; Fannie Mae and Freddie Mac established a partnership with the National Community Stabilization Trust (NCST) that will leverage ties to community organizations and local non-profits to meet these two goals.&#160; </p><p><strong>Pre-Foreclosure Strategy – MyCity Modification</strong></p><p>The MyCity Modification program will be offered within the geographic limits of Cook County, Illinois to borrowers who are delinquent on their mortgage and facing foreclosure.&#160; Eligibility criteria for being considered for the modification are simple and include most borrowers with Fannie Mae and Freddie Mac conventional mortgages on properties where the current market value is $250,000 or less.&#160;&#160; </p><p>Borrowers who are 90 days or more delinquent on their mortgage and are eligible for a MyCity Modification will receive an offer from their servicer with the terms of a MyCity Modification Trial Payment Plan.&#160; The goal of a MyCity Modification is to reduce a borrower's monthly mortgage payments by up to 60 percent.&#160; Mortgage servicers will complete the following steps to the extent necessary to reach this goal&#58;</p><ul><li>Add any accrued and unpaid interest, plus any amount paid by the mortgage servicer to other parties on the borrower's behalf, such as taxes or insurance, to the existing mortgage balance;</li><li>Lower the current interest rate on the mortgage in 1/8 percentage increments down to a floor of 2.00%, which will be fixed for the life of the modified loan; </li><li>Extend the term of the loan in one-month increments up to a maximum term of 480 months;</li><li>Defer repayment of a portion of the unpaid principal balance.</li></ul><p>Upon successful completion of the Trial Payment Plan, the borrower will receive final loan modification documents.&#160; Signing these documents will result in a permanent loan modification.&#160; If a borrower does not accept a MyCity Modification offer or cannot afford the payments, the mortgage servicer must evaluate the borrower for additional loss mitigation solutions to avoid foreclosure. &#160;The Trial Payment Plan period may range from three to four months, depending on a borrower's circumstances.</p><p>Borrowers who are less than 90 days delinquent are also eligible to be considered for the MyCity Modification and may apply by contacting their Servicer, completing the Uniform Borrower Application Form, and providing any required income and hardship documentation.&#160; </p><p><strong>Post-Foreclosure Strategy – Enhanced First Look</strong></p><p>Properties that have gone through foreclosure and become Real Estate Owned (REO) properties of Fannie Mae and Freddie Mac will be presented to eligible NCST community buyers to review for purchase.&#160; NCST buyers will have up to 12 business days to express interest in a property and agree on a price before the property is made available for purchase to the general public.&#160; During this Enhanced First Look period, NCST community buyers will evaluate the property and determine a disposition strategy that makes the most sense for all parties, taking into account the needs of a particular community.&#160; Single family structures, including condominiums, town homes, and 2-4 unit properties, are eligible for Enhanced First Look.&#160; The final sales price for each property will vary depending on the market value of the property and may include discounts for marketing, upkeep, utilities, and taxes – all costs that Fannie Mae and Freddie Mac would have had to pay if the property were sold during standard disposition of their REO inventory rather than through the Enhanced First Look process.&#160; Fannie Mae and Freddie Mac may also contribute funds for rehabilitation or for the demolition of properties they do not have to do themselves up to certain limits.&#160; </p><p>Only NCST community buyers are eligible to take advantage of the Enhanced First Look period.&#160; For more information about becoming an NCST community buyer, please contact NCST at <a href="mailto&#58;buyer@stabilizationtrust.com">buyer@stabilizationtrust.com</a>.</p><p><a href="/PolicyProgramsResearch/Programs/Pages/NSI-map.aspx">An interactive map</a>&#160;shows REO properties that are currently available through Fannie Mae's HomePath website and Freddie Mac's HomeSteps website.&#160; These are properties that have gone through foreclosure, are now owned by one of the Enterprises, and are ready for sale to the public.&#160; The map also includes Fannie Mae and Freddie Mac properties that are not yet ready to be marketed because they are in the process of being repaired, are currently occupied, or are in the Illinois state redemption period.&#160; These &quot;Future Listings&quot; will be offered through the Enhanced First Look process prior to listing on the Cook County Multiple Listing Service. </p>4/15/2015 12:31:00 PM2115http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Non-Performing Loan (NPL) Sale Requirements17508<p>On March 2, 2015, the Federal Housing Finance Agency (FHFA) announced enhanced non-performing loan (NPL) requirements for sales of NPLs by Freddie Mac and Fannie Mae (the Enterprises) that will reduce risk to taxpayers by transferring it to the private sector.&#160; FHFA believes that the sale of severely delinquent loans through NPL sales will reduce Enterprise losses and improve borrower and neighborhood outcomes.&#160; </p><p>The enhanced NPL sale requirements draw upon the experience of Freddie Mac’s two pilot sales of NPLs last year and this year.&#160; The loans in these two transactions have an aggregate value of approximately one billion dollars in unpaid principal balance.&#160; </p><p>The loans included in NPL sales will generally be severely delinquent – typically more than one year past due.&#160; FHFA’s goal is to achieve more favorable outcomes for the Enterprises and for borrowers by providing alternatives to foreclosure wherever possible.&#160; In addition, reporting by servicers on borrower outcomes will be required after the transactions close, which will allow the Enterprises to document whether the desired outcomes are being achieved.&#160; </p><p>Future NPL sales by the Enterprises must meet the enhanced requirements, which include the following&#58;&#160; </p><ul><li><p><strong>Bidder qualifications&#58; </strong>Bidders will be required to identify their servicing partners at the time of qualification and must complete a servicing questionnaire to demonstrate a record of successful resolution of loans through alternatives to foreclosure;</p></li></ul><ul><li><p><strong>Modification requirements&#58; </strong>The new servicer will be required to evaluate all pre-2009 borrowers (other than those whose foreclosure sale date is imminent or whose property is vacant) for the U.S. Department of the Treasury’s Making Home Affordable programs, including the Home Affordable Modification Program (HAMP).&#160; All post-January 1, 2009 borrowers (other than those with an imminent foreclosure sale date or vacant property) must be evaluated for a proprietary modification.&#160; Proprietary modifications must not include an upfront fee or require prepayment of any amount of mortgage debt, and must provide a benefit to the borrower with the potential for a sustainable modification;</p></li></ul><ul><li><p><strong>Loss mitigation waterfall requirements&#58;</strong> Servicers must apply a waterfall of resolution tactics that includes evaluating borrower eligibility for a loan modification (HAMP and/or proprietary modification), a short sale, and a deed-in-lieu of foreclosure.&#160; Foreclosure must be the last option in the waterfall.&#160; The waterfall may consider net present value to the investor;</p></li></ul><ul><li><p><strong>REO sale requirements&#58;</strong> Servicers are encouraged to sell properties that have gone through foreclosure and entered Real Estate Owned (REO) status to individuals who will occupy the property as their primary residence or to non-profits.&#160; For the first 20 days after any NPL that becomes an REO property is marketed, the property may be sold only to buyers who intend to occupy the property as their primary residence or to non-profits; </p></li></ul><ul><li><p><strong>Subsequent servicer requirements&#58;</strong>&#160; Subsequent servicers must assume the responsibilities of the initial servicer; </p></li></ul><ul><li><p><strong>Bidding transparency&#58;</strong>&#160; To facilitate transparency of the NPL sales program and encourage robust participation by all interested participants, each Enterprise will develop a process for announcing upcoming NPL sale offerings.&#160; This will include an NPL webpage on the Enterprise’s website, email distribution to small, non-profit and minority- and women-owned business (MWOB) investors, and proactive outreach to potential bidders.&#160; Additionally, each Enterprise will host training sessions for interested non-profit and MWOB investors to facilitate better understanding of the NPL sales process.&#160; The Enterprises will also offer small pools of NPLs, where feasible; </p></li></ul><ul><li><p><strong>Reporting requirements&#58;</strong>&#160; NPL buyers and servicers, including subsequent servicers, are required to report loan resolution results and borrower outcomes to the Enterprises for four years after the NPL sale.&#160; These reports will help inform whether to make future changes to NPL sales requirements and determine whether an NPL buyer and NPL servicer continue to be eligible for future sales based on pool level borrower outcomes, adjusted for subsequent market events.&#160; Consistent with applicable law, FHFA and/or the Enterprises will provide public reports on aggregate borrower outcomes at the pool level.&#160; </p></li></ul><p> <a href="/Media/PublicAffairs/Pages/FHFA-Enhances-Requirements-for-Freddie-Mac-and-Fannie-Mae-Sales-of-Non-Performing-Loans.aspx">Related News Release</a></p>3/2/2015 5:00:12 PM12401http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Detroit, Michigan NSI Fact Sheet - Update15245<p>​<strong>​​Summary</strong></p><p>The Neighborhood Stabilization Initiative (NSI) was jointly developed by the Federal Housing Finance Agency (FHFA), and Fannie Mae and Freddie Mac.&#160; Announced in May 2014, it is a pilot program designed to stabilize neighborhoods that have been hardest hit by the housing downturn.&#160;<span style="line-height&#58;22px;">The program promotes strategies to <strong><em>help delinquent borrowers avoid foreclosure,</em></strong> and strategies for more efficient <strong><em>disposition of foreclosed properties</em></strong>.&#160; A partnership with the National Community Stabilization Trust is leveraging ties to community organizations and local non-profits to meet these two goals.&#160; Initial piloting of the program has occurred within the city limits of Detroit, Michigan.</span></p><p><strong>Background</strong></p><p>The number of REO properties owned by Fannie Mae and Freddie Mac is declining and approaching pre-crisis levels in some states. At the national level, the REO inventory of Fannie Mae and Freddie Mac&#160;is declining from its 3Q10 peak of nearly 250,000 properties to 132,000 as of 2Q14, as dispositions outpace acquisitions. However, in some areas of the country REO inventory continues to increase&#160;or remains near historic highs. Some particular markets have large concentrations of distressed and low-value REO properties as well as large volumes of loans that have been delinquent for one to two years that are likely to become REO. </p><p>Given the unique challenges presented by these markets—high vacancy rates, weak for-sale markets, steep home-price declines—Fannie Mae and Freddie Mac are partnering with the National Community Stabilization Trust (NCST), a national non-profit organization experienced in stabilization efforts for distressed communities. Working together, they will leverage their ties to “boots on the ground” community organizations and local non-profits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.</p><p><strong>NSI PILOT PROGRAM ELEMENTS</strong> </p><div><p><strong>Pre-Foreclosure Strategies</strong> </p><p>The NSI program offers Detroit borrowers who are delinquent on their mortgages the opportunity to receive a loan modification that will reduce their monthly payments, help them avoid foreclosure and stay in their homes.<br></p></div><ul><li><strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;">MyCity Modification</strong><span style="line-height&#58;22px;"> - The new MyCity Modification has been added to the traditional loan modification programs (HAMP, Standard Modification, and Streamlined Modification) being offered by Fannie Mae and Freddie Mac in the city limits of Detroit.</span></li><ul><li><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​MyCity Modification allows for greater reduction in monthly mortgage payments.</span></li><li><p>Delinquent borrowers will be evaluated for all Fannie Mae and Freddie Mac loan modification programs and will be offered the modification that results in the <strong><em>lowest monthly payments</em></strong> for them, if eligible.</p></li><li><p>As of September 1, 2014, MyCity Modification is a mandatory offering of Fannie Mae and Freddie Mac.</p></li><li><span style="line-height&#58;22px;">On average, MyCity Modification participants are seeing their monthly principal and interest payments cut in half.</span></li></ul></ul><p>The NSI program also includes a strategy that allows severely delinquent, low-balance loans to be transferred to a non-profit entity for resolution prior to foreclosure.&#160; Solutions offered by the non-profit may include but not be limited to, a short sale or a deed-in-lieu of foreclosure, or a loan modification.<br></p><p><strong>Post-Foreclosure Strategies </strong><br>The NSI program includes three strategies for disposing of foreclosed properties.&#160; These strategies are designed to increase home retention and decrease the number of vacant houses. </p><ul><li><strong style="line-height&#58;22px;font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;">​Quick Look</strong><span style="line-height&#58;22px;">&#160;-&#160;Through the Quick Look program, non-profit organizations are given an exclusive 7-day opportunity, immediately after foreclosure, to purchase properties from Fannie Mae and Freddie Mac.&#160; Participating nonprofits receive notification and property information, so that they can evaluate and acquire properties prior to any public sales listing.&#160;</span></li><ul><li><span style="font-family&#58;inherit;font-size&#58;inherit;font-weight&#58;inherit;">​​Partnerships with 8 local non-profits have been established.</span></li><li><p>Approximately 33 percent of all properties presented to non-profits since July have been purchased through the Quick Look program.</p></li></ul><li><span style="line-height&#58;22px;">​</span><span style="line-height&#58;22px;"><strong>Auction Sales</strong>&#160;- Occupied properties not acquired by a non-profit through the Quick Look period will be sold at auction.</span></li><ul><li><p>Investors who purchase these properties might negotiate new rental terms with the occupant.</p></li><li><p>Occupied properties that are not sold at auction will go through the normal process of real-estate owned (REO) disposition, which includes protection of the property and preparation for sale, while the redemption period passes.</p></li><li><p>Auctions have already commenced in Detroit and early results are encouraging.</p></li></ul></ul><p><strong>Enhanced First Look</strong> - Vacant properties that are not acquired by non-profits through the Quick Look program will go through the normal process of REO disposition, which includes preservation and protection of the property while the redemption period passes, and the Enhanced First Look program.</p><ul><ul><li><p>The Enhanced First Look program segments properties based on their value and condition.</p></li><li><p>Non-profit organizations are given incentives through a range of sales concessions to acquire these properties.</p></li><li><p>As of September 12, non-profits have agreed to purchase almost 70 percent of all properties presented to them through the Enhanced First Look program.​​​​</p></li></ul></ul>2/12/2015 11:10:54 PM2272http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Detroit, Michigan NSI10734<h2> ​​​​Summary</h2><p>The Neighborhood Stabilization Initiative (the “NSI”) was jointly developed by the Federal Housing Finance Agency (FHFA), Fannie Mae and Freddie Mac to stabilize neighborhoods that have been hardest hit by the housing crisis.&#160; The program includes two distinct pre-foreclosure strategies and three distinct post-foreclosure strategies, all of which are intended to assist homeowners who are behind on their mortgages, help neighborhoods recover, and reduce the inventory of real estate owned (REO) properties held by Fannie Mae and Freddie Mac.&#160; Initial piloting of the program will occur within the city limits of Detroit, Michigan and will begin in the coming weeks.</p><h2> Background</h2><p>The number of REO properties owned by Fannie Mae and Freddie Mac is declining and approaching pre-crisis levels in some states.&#160; At the national level, the REO inventory of Fannie Mae and Freddie Mac is declining from its 3Q10 peak of nearly 250,000 properties to 150,000 in 4Q13, as dispositions outpace acquisitions.&#160; However, in some areas of the country REO inventory continues to increase or remains near historic highs.&#160; Some particular markets have large concentrations of distressed and low-value REO properties as well as large volumes of loans that have been delinquent for one to two years that are likely to become REO.&#160; </p><p>Given the unique challenges presented by these markets—high vacancy rates, weak for-sale markets, steep home-price declines—Fannie Mae and Freddie Mac are partnering with the National Community Stabilization Trust (NCST), a national non-profit organization experienced in stabilization efforts for distressed communities.&#160; Working together, they will leverage their ties to “boots on the ground” community organizations and local non-profits, and work closely with local governments to make timely and informed decisions about the best treatment of individual properties.&#160; </p><h2> NSI Program Goals</h2><p>The NSI program has three primary goals&#58;</p><ol><li><p>To increase the number of families able to stay in their current homes through loan modifications;</p></li><li><p>To effectively match distressed properties with responsible non-profits for property renovation and resale; and</p></li><li><p>To assist distressed communities in executing their building demolition plans.</p></li></ol><p>Goals one and two should decrease vacant houses by increasing the number of properties occupied by owners or renters.&#160; Non-profits may renovate properties for sale to owner-occupants, lease back to current occupants when possible, or lease to other qualified renters.&#160; For pre-foreclosure properties, the program will offer incentives to current borrowers and nonprofits, maximize payment relief and increase chances for current or future occupants to stay in the home.&#160; When such efforts are not feasible, the delinquent notes would be conveyed to NCST for resolution.&#160; For post-foreclosure properties, the program will consider an array of neighborhood stabilization options such as donation, demolition, financial incentive mechanisms, repairs, and auctions.&#160; </p><h2> NSI Program Elements</h2><p> <span style="text-decoration&#58;underline;">Pre-Foreclosure Strategies</span>&#58;</p><ul><li><p style="margin&#58;0px;padding&#58;0px;"> <strong>Distressed Region Modification</strong> – Borrowers will be evaluated for a new loan modification that provides a greater reduction in monthly principal and interest payments than is available in the traditional loan modification programs.</p>​</li><li><p style="margin&#58;0px;padding&#58;0px;"> <strong>Non-Performing Loan Sale/Donation</strong> – Severely delinquent low-balance loans secured by distressed properties may be transferred to a non-profit entity for resolution prior to foreclosure.</p></li><ul><li><p style="margin&#58;0px;padding&#58;0px;">Non-profits will work with seriously delinquent owners to determine the most feasible outcome for the household and the property.</p></li><li><p style="margin&#58;0px;padding&#58;0px;">Solutions may include new affordable payment terms, a short sale, a deed-in-lieu of foreclosure, or foreclosure and subsequent repair or demolition, as appropriate.</p></li></ul></ul><p> <span style="text-decoration&#58;underline;">Post-Foreclosure Strategies</span>&#58;</p><ul><li><p><strong>​​NCST Quick Look period</strong> – Non-profits will have an opportunity to acquire certain REO properties (occupied or vacant) through purchase or receive properties as a donation prior to the Enterprises initiating their standard disposition processes.&#160; NCST will assist the Enterprises with these sales and donations.</p></li><li><p> <strong>Post-Quick Look</strong> – Occupied properties not sold or donated to non-profits during the Quick Look period will be sold at auction; vacant properties and those that do not sell via auction will be prepared for normal REO sales, which starts with the First Look process, a 20-day period when properties are offered only to owner-occupants, nonprofits, and governmental entities.</p></li><li><p> <strong>Enhanced First Look Process</strong> – Properties will be offered to non-profits through NCST several days prior to being marketed through Multiple Listing Services (MLS).&#160; For low-value REO properties, Fannie Mae and Freddie Mac will work with NCST and local community organization to determine the optimum disposition of individual properties, which may result in donation, donation/demolition, or repair/rehabilitation.&#160; Discounts and incentives may be offered to non-profits depending on characteristics such as property condition, value, and location.</p></li></ul>2/12/2015 11:09:37 PM6498http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
Home Affordable Refinance Program (HARP)11106<p><strong>**updated May 8, 2015 - HARP program extended through 2016. &#160;</strong></p><h2>Program Overview </h2><p>The Federal Housing Finance Agency (FHFA) and the Department of the Treasury introduced HARP in early 2009 as part of the Obama Administration’s Making Home Affordable program. HARP provides borrowers, who may not otherwise qualify for refinancing because of declining home values or reduced access to mortgage insurance, the ability to refinance their mortgages into a lower interest rate and/or more stable mortgage product. </p><h2>Homeowners Helped Since Program Inception </h2><p>As of August 31, 2011, nearly 894,000 borrowers had refinanced through HARP. </p><h2>HARP is only one refinancing option </h2><p>HARP is only one of several refinancing options available to homeowners. Since April 2009 when HARP began, Fannie Mae and Freddie Mac have helped approximately nine million families refinance into a lower cost or more sustainable mortgage product. HARP is unique in that it is the only refinance program that enables borrowers who owe more than their home is worth to take advantage of low interest rates and other refinancing benefits. <br><img alt="FMandFRM_Refinance_Monthly-Through-Aug-2011.png" src="/Media/PublicAffairs/PublishingImages/Pages/Home-Affordable-Refinance-Program-(HARP)/FMandFRM_Refinance_Monthly-Through-Aug-2011.png" style="margin&#58;5px;width&#58;768px;" /></p><h2>Borrower Eligibility </h2><ul><li><p>The existing mortgage must have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009. <br>Homeowners can determine if they have a Fannie Mae or Freddie Mac loan by going to&#58; <br><a href="http&#58;//www.fanniemae.com/loanlookup/">http&#58;//www.FannieMae.com/loanlookup/</a> &#160;or calling 800-7FANNIE (8 am to 8 pm ET) <br><a href="https&#58;//ww3.freddiemac.com/corporate/">https&#58;//ww3.FreddieMac.com/corporate/</a> or 800-FREDDIE (8 am to 8 pm ET)</p></li><li><p>The program will continue to be available for loans with LTVs above 80 percent. </p></li><li><p>Borrowers must be current on their mortgage payments with no late payment in the past six months and no more than one late payment in the past 12 months. </p></li><li><p>Borrowers should contact their existing lender or any other mortgage lender offering HARP refinances. </p></li></ul><p><strong>**On May 8, 2015, FHFA announced the extension of HARP through 2016.</strong></p><h2>Other Resources </h2><p></p><p>see <a href="http&#58;//www.harp.gov/About">HARP.gov </a>for more details. </p><p><a href="http&#58;//www.makinghomeaffordable.gov/">www.MakingHomeAffordable.gov</a> &#160;or call 1-888-995-HOPE (4673) <br><a href="http&#58;//www.knowyouroptions.com/">www.KnowYourOptions.com</a> &#160;or <a href="http&#58;//www.fanniemae.com/homeowners">www.FannieMae.com/homeowners</a> &#160;<br><a href="http&#58;//www.freddiemac.com/avoidforeclosure">www.FreddieMac.com/avoidforeclosure</a>&#160;&#160;<br> </p>5/27/2015 6:52:46 PM3004http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Director James Lockhart Outlines Progress and Challenges on Agency’s First Anniversary10842<h1 style="text-align&#58;center;">FHFA FACT SHEET</h1><h2>&#160;</h2><h2>REPORTS</h2><p>The Housing and Economic Recovery Act of 2008 (HERA) directed the Federal Housing Finance Agency (FHFA) to conduct studies on topics integral to the regulation of the housing GSEs. The following is a summary&#58;</p><p><strong>The Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2007 and 2008 </strong>– Section 1601 of HERA required FHFA to conduct an ongoing study of the guarantee fees charged by Fannie Mae and Freddie Mac and to submit annual reports to Congress that analyze those fees and the criteria the Enterprises used to derive them. FHFA is releasing today the first such report, which covers guarantee fees charged by the Enterprises in 2007 and 2008. The report focuses on guarantee fees for conventional single-family mortgages—loans that are not insured or guaranteed by the federal government and that finance properties with four or fewer residential units. As required by HERA, the report analyzes how guarantee fees for those mortgages varied by product type, risk classifications, and seller delivery volume. Findings include&#58; 1) Cross-subsidization in single-family guarantee fees charged by Fannie Mae and Freddie Mac was evident in 2007 and 2008 across product types, credit score categories, and loan-to-value (LTV) ratio categories; 2) the average estimated cost of single-family mortgages guaranteed in 2007 was significantly higher than the average estimated guarantee fee charged by the Enterprises, reflecting the general market underpricing of mortgage credit risk in that year; and 3) the Enterprises responded to deteriorating housing market conditions with guarantee fee pricing increases beginning in March 2008 and, despite those increases, gained market share as private competitors for single-family mortgage credit risk retreated from the market.</p><p><a href="/AboutUs/Reports/Pages/Fannie-Mae-and-Freddie-Mac-Single-Family-Guarantee-Fees-in-2007-and-2008.aspx">Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2007 and 2008</a></p><p><strong>The Federal Home Loan Bank (FHLBank) Securitization Study</strong> – As required under Section 1215 of HERA, this study analyzes the benefits and risks of FHLBank securitization, the potential impact of securitization upon liquidity in the mortgage markets, the ability of the FHLBanks to manage the attendant risks, and the likely effects of such a program on the existing activities, joint and several liability, and cooperative structure of the FHLBank System. In conducting the study, the FHFA consulted with the FHLBanks, the FHLBanks’ fiscal agent (the Office of Finance), representatives of the mortgage lending industry, practitioners in the structured finance field, and other experts. The study noted that considerable uncertainty surrounded the future of mortgage securitization in the United States at this time, including issues related to the future regulation of the mortgage and financial markets, which made it difficult to assess the merits of allowing the FHLBanks to securitize mortgages. The report recommends that FHLBanks not be allowed to securitize mortgages at this time but instead continue to use programs such as MPF Xtra to serve as a conduit for mortgage purchases from their members to a third party that can securitize mortgages. It concluded that while FHLBank securitization could enable the FHLBanks to purchase a larger volume of conforming mortgages from members and increase the availability of mortgage credit, FHLBank securitization of mortgages would best be considered after government agencies have developed their recommendations concerning the future of the mortgage-related government sponsored enterprises based on market conditions that exist when that effort is completed.</p><p><a href="/AboutUs/Reports/Pages/Securitization-of-Mortgage-Loans-by-the-Federal-Home-Loan-Bank-System.aspx">Securitization of Mortgage Loans by the Federal Home Loan Bank System</a></p><p><strong>The Study of FHLBank Advances and Interagency Guidance on Nontraditional Mortgages</strong> – Section 1217 of HERA requires the Director to conduct a study on the extent to which mortgage loans and securities used as collateral for FHLBank advances are consistent with the guidance promulgated by the federal banking agencies on nontraditional mortgage products. The Director is also required to consider any additional actions that may be necessary to ensure that the FHLBanks do not support mortgage loans with predatory characteristics, and to submit a report to Congress on the results of the study. Section 1217 also requires that the public have an opportunity to comment on any recommendations for further action.</p><p>Today, the Director delivered to Congress the study required by Section 1217 of HERA in the form of a Federal Register Notice that FHFA is concurrently sending for publication in the Federal Register. After considering comments received during a 60-day comment period, the Director will make any appropriate revisions and submit an updated version of the study to the Congress. The study identifies several advisory bulletins issued by the Federal Housing Finance Board, a predecessor agency to the FHFA, between 2005 and 2008 that provided guidance regarding nontraditional and subprime mortgage loans and anti-predatory lending, and notes that each FHLBank has adopted policies, procedures, and practices requiring that mortgage loans and securities used as collateral be consistent with the interagency guidance, as well as policies addressing anti-predatory lending. The study further notes that the FHFA assesses each FHLBank’s compliance with this guidance, as well as the adequacy of its policies, through the supervisory process and will rely on that process in considering whether to adopt additional guidance governing the FHLBanks’ acceptance of these types of collateral.</p><p><strong>The Report on Federal Home Loan Bank Collateral Securing Advances</strong> – Section 1212 of HERA requires that the FHFA provide an annual report to Congress on the collateral pledged to the FHLBanks to secure advances made to their members and housing associates, including an analysis by type and FHLBank district. The report we are releasing today is the second that we are providing to Congress under the requirements of Section 1212. It is based on our 2009 annual collateral data survey, which collected information as of December 31, 2008. It is an update of the initial report that we provided to Congress on January 26, 2009, as of December 31, 2007. The annual collateral data survey provided the data cited in the HERA Section 1217 report. The Section 1212 report complements the Section 1217 report by providing additional background information and data on collateral securing advances at the FHLBanks.</p><p>The Report on FHLBank Collateral Securing Advances discusses the methods by which the FHLBanks accept collateral securing advances and the extent to which the FHLBanks use each method. It also discusses the composition of collateral – 60 percent of collateral is whole residential mortgage loans – and collateral-to-advances coverage ratios. The average collateral coverage ratio across the FHLBank System for members of all asset sizes was 160 percent at the end of 2008, an eight percentage point increase from the end of 2007. The report also provides information on the collateral securing advances over the past five years in the categories of whole residential mortgage loans, mortgage-backed securities, other securities, other real estate related collateral (ORERC), and community financial institution (CFI) collateral, and provides detailed breakdowns of ORERC and CFI collateral by type and amount. The report covers topics of timely interest such as collateral coverage of advances to insurance companies and credit unions and provides additional information on subprime and nontraditional residential mortgage loans accepted as collateral for advances.</p><p><a href="/AboutUs/Reports/Pages/Report-on-Federal-Home-Loan-Bank-Collateral-for-Advances-and-Interagency-Guidance-on-Nontraditional-Mortgage-Products-(July.aspx">Report on FHLBank Collateral for Advances and Interagency Guidance on Nontraditional Mortgage Products</a></p><p>&#160;</p><h2>RULES AND NOTICES</h2><p>(Hyperlinks for each document provided below. All can also be found on page at&#58; <a href="/SupervisionRegulation/RegulationFederalRegister">www.fhfa.gov/SupervisionRegulation/RegulationFederalRegister</a>.)</p><ol><li><p><strong>2009 Enterprise Transition Affordable Housing Goals—Final Rule</strong> (12 CFR Part 1282)<br><br>Summary&#58; After analyzing current market conditions and receiving public comment, the final rule adjusts downward the overall housing goals for the Enterprises for 2009. Three home purchase subgoal levels remain as proposed, while the dollar-based special affordable multifamily housing subgoal levels are adjusted upward. The final rule also permits loans owned or guaranteed by an Enterprise that are modified in accordance with the Administration’s Making Home Affordable Program announced on March 4, 2009, to be treated as mortgage purchases and count for purposes of the housing goals. In addition, the final rule excludes purchases of jumbo conforming loans from counting towards the 2009 housing goals.<br><br><a href="/SupervisionRegulation/Rules/Pages/2009-Enterprise-Transition-Affordable-Housing-Goals-Mortgage-Market-Assessment-Final-Rule.aspx">Link to Final Rule</a></p></li><li><p><strong>Duty to Serve Underserved Markets for Enterprises—Advance Notice of Proposed Rulemaking</strong> (12 CFR Part 1282)<br><br>Summary&#58; FHFA is required, beginning in 2010, to establish a manner for evaluating the Enterprises’ compliance with the new statutory duty to serve underserved markets. That duty includes service to three underserved markets—manufactured housing, affordable housing preservation and rural areas. To assist FHFA in rulemaking to implement this duty, FHFA seeks comments through an Advance Notice of Proposed Rulemaking on the characteristics and types of Enterprise transactions and activities that should be considered and how such transactions and activities should be evaluated and rated. This would lead to a proposed rulemaking for further public input.<br><br><a href="/SupervisionRegulation/Rules/Pages/Duty-to-Serve-Underserved-Markets-for-Enterprises.aspx">Link to Advance Notice</a></p></li><li><p><strong>Affordable Housing Program Amendments&#58; FHLBank Mortgage Refinancing Authority—Interim Final Rule with Request for Comments</strong> (12 CFR Part 1291)<br><br>Summary&#58; FHFA is issuing and seeking comment on a second interim final rule relating to authorization for the Banks to provide the existing Affordable Housing Program (AHP) subsidy through their members to assist in the refinancing of low or moderate income households’ mortgages under certain federal, state and local programs for targeted refinancing. The first interim final rule authorized such subsidies to those qualifying under the Hope for Homeowners Program. The new rule expands the program to other government eligible programs, including the Administration’s Making Home Affordable Refinancing program. The authority was provided in the Housing and Economic Recovery Act on a temporary basis until July 30, 2010. While the rule is effective immediately, FHFA determined that it would seek public comments on the rule.<br><br><a href="/SupervisionRegulation/Rules/Pages/Affordable-Housing-Program-Amendments-FHLBank-Mortgage-Refinancing-Authority-Interim-Final-Rule.aspx">Link to Interim Final Rule</a></p></li><li><p><strong>FHLBank Collateral for Advances and Interagency Guidance on Nontraditional Mortgage Products—Notice of Study and Recommendations and Request for Comments</strong> (2009-N-10&#58; HERA Section 1217-Study)<br><br>Summary&#58; The Housing and Economic Recovery Act of 2008 (HERA) requires the Director to conduct a study, which must be submitted to Congress, on the extent to which loans and securities used as collateral to support Federal Home Loan Bank (Bank) advances are consistent with the federal financial institution regulatory agencies’ interagency guidance on nontraditional mortgage products and statement on subprime mortgage lending. Further, the study must consider and recommend any additional regulations, guidance, advisory bulletins, or other administrative actions necessary to ensure that the Banks are not supporting loans with predatory characteristics. This notice is intended to inform the public about the study and provide the public with the requisite opportunity to comment.<br><br><a href="/SupervisionRegulation/Rules/Pages/FHLBank-Collateral-for-Advances-and-Interagency-Guidance-on-Nontraditional-Mortgage-Products-Notice-of-Study-and-Re.aspx">Link to Notice</a></p></li><li><p><strong>Board of Directors of FHLBank System Office of Finance—NPR with Request for Comments</strong> (12 CFR Part 1273 and 12 CFR Part 1274)<br><br>Summary&#58; The Office of Finance is governed by a board of directors, the composition and functions of which are determined by FHFA’s regulations. The FHFA’s experience with the Federal Home Loan Bank System and with the combined financial reports prepared for the System by the Office of Finance, during the recent period of market stress suggests that the Office of Finance and the System could benefit from a reconstituted and strengthened board. This proposed regulation is intended to achieve that by increasing the size of the board and having it comprised of the twelve Bank presidents and three-to-five independent directors, creating an audit committee, providing for the creation of other committees and setting a method for electing independent directors along with setting qualification for these directors. Under the proposed rule, the audit committee would be charged with oversight of greater consistency in accounting policies and procedures by the Banks; this will enhance the value of the combined financial reports of the Office of Finance.<br><br><a href="/SupervisionRegulation/Rules/Pages/Board-of-Directors-of-Federal-Home-Loan-Bank-System-Office-of-Finance-Notice.aspx">Link to Proposed Rule</a></p></li><li><p><strong>Record Retention—NPR with Request for Comments</strong> (12 CFR Part 1235)<br><br>Summary&#58; The proposed regulation would require the regulated entities and the Federal Home Loan Banks’ Office of Finance to establish and maintain a record retention program to ensure that records are readily accessible for examination and other supervisory purposes. The proposed regulation is based on OFHEO’s Record Retention regulation and a provision of the FHFB’s Data Availability and Reporting regulation. This proposed regulation seeks to assure strong record maintenance and availability for the security of the regulated entities and to facilitate effective supervision.<br><br><a href="/SupervisionRegulation/Rules/Pages/Record-Retention-74-FR-38559.aspx">Link to Proposed Rule</a></p></li><li><p><strong>Capital Classifications and Critical Capital Levels for the FHLBanks—Final Rule</strong> (Note-Title of the CFR Part is&#58; Capital Classifications and Prompt Corrective Action) (12 CFR Part 1229)<br><br>Summary&#58; The final regulation makes final an interim final rule published on January 30, 2009 to define the critical capital levels for the Federal Home Loan Banks, establishes the criteria for capital classifications, and implements FHFA’s prompt correction action authority over the Banks. While certain changes were made to the interim final rule, FHFA determined, after seeking comment on a proposal to adopt or add a “well capitalized” classification to the capital classification, not to undertake such action at this time.<br><br><a href="/SupervisionRegulation/Rules/Pages/Capital-Classifications-and-Critical-Capital-Levels-for-the-Federal-Home-Loan-Banks-Prompt-Corrective-Action.aspx">Link to Final Rule</a></p></li></ol>Fact sheet for news release "FHFA Director James Lockhart Outlines Progress and Challenges on Agency’s First Anniversary."5/30/2014 1:11:31 AM126http://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx

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