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Statement

Statement of FHFA Director Melvin L. Watt on the Finalization of Life-of-Loan Representation and Warranty Exclusions

FOR IMMEDIATE RELEASE
11/20/2014

​“The release of details today by Fannie Mae and Freddie Mac clarifying the definition of life-of-loan exclusions and when they apply is a positive step forward for housing finance.  Concerns about when a mortgage loan might be subject to repurchase, along with other market factors, have contributed to increased credit overlays that drive up lending costs and reduce access to credit.  Clarifying these life-of-loan exclusions will not impact the credit standards of Fannie Mae or Freddie Mac, but they will provide greater certainty for all parties, facilitate greater liquidity and increase access to credit without compromising safety and soundness.”​

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.6 trillion in funding for the U.S. mortgage markets and financial institutions.

Contacts:

​​Corinne Russell (202) 649-3032​​ / Stefanie Johnson (202) 649-3030​

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