Federal Housing Finance Agency Print
Home / Supervision & Regulation / Federal Register / Suspended Counterparty Program

Suspended Counterparty Program

Open Date:
Open for comment
All comments are due by
Final Rule
Fannie Mae; FHLBanks; Freddie Mac
Document Number:
12 CFR 1227
CFR Description:
Federal Register Publish Date:
View Document:
Contact Information:

FOR FURTHER INFORMATION CONTACT: Tasha Cooper, Associate General Counsel, at (202) 649-3091 (not a toll-free number), Federal Housing Finance Agency, Eighth Floor, 400 Seventh Street SW., Washington, DC 20219. The telephone number for the Hearing Impaired is (800) 877-8339 (TDD only).

Related Documents:
/SupervisionRegulation/Rules/RuleDocuments/CFR-2014-title12-vol10-part1227.pdf|199.17 KB;

There are currently no related dockets for the selected rule.

SUMMARY: This final rule establishes requirements and procedures for the Federal Housing Finance Agency's (FHFA) Suspended Counterparty Program. Under the Suspended Counterparty Program, FHFA may issue suspension orders directing the regulated entities (Fannie Mae, Freddie Mac, and the eleven Federal Home Loan Banks (Banks)) to cease doing business with an individual or institution, and any affiliate thereof, for a specified period of time where such party has committed fraud or other financial misconduct involving a mortgage transaction. 

The final rule revises the interim final rule published on October 23, 2013. The final rule excludes from the types of covered transactions that would be subject to a final suspension order any transaction involving a residential mortgage loan if the loan is secured by the respondent's own personal or household residence. The final rule provides more time than the interim final regulation provided for the regulated entities to submit reports to FHFA when they become aware that any individual or institution, and any affiliate thereof, with which they do business, has committed fraud or other financial misconduct involving a mortgage transaction. The final rule also simplifies the standard for issuing suspension orders by eliminating the requirement that FHFA demonstrate that the regulated entity has done business with the individual or institution within the past three years. Finally, the final rule clarifies the method of issuing notices of proposed suspension orders with respect to affiliates.

Submit a Comment
NOTE: To ensure file attachments are received, make certain file names do NOT include characters such as ~ # % & * { } \ : < > ? / |, that file names are short and concise, and that the file does not exceed 50MB. If you have trouble submitting input or uploading documents to attach to your input, please contact FHFAwebmaster@FHFA.gov or call (202) 649-3031 for assistance.

Privacy Act Notice

This notice is provided pursuant to the Privacy Act of 1974 (Privacy Act), as amended, 5 U.S.C. 552a. The collection of information is to process and/or respond to your complaint, appeal, inquiry, request for information, to review and post comments on proposed rules/regulations, to review feedback received on FHFA proposed or implemented initiatives, and to compile a list of potential vendors and contractors. The records are used in accordance with Systems of Records Notices (SORN), FHFA-3 Correspondence Tracking System, FHFA-20 Telecommunications System, and FHFA-22 Online Forms. You can view these SORNs by clicking here and here and here . Although providing this information is voluntary, failure to provide the requested information may result in your complaint, appeal, inquiry, request, comment, or feedback not being processed and may make it more difficult for FHFA to respond to you.

© 2021 Federal Housing Finance Agency