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 Releases, Statements, Speeches and Testimony

 

 

FHFA Issues RFI on Short-Term Rental Units in Condominium, Cooperative, and Planned Unit Development Projects341335/6/2021 4:00:00 AMNews Release<p><strong>Washington, D.C.</strong> – The Federal Housing Finance Agency (FHFA) today issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) eligibility requirements for mortgages in condominium (condo), cooperative (co-op), and planned unit development (PUD) projects where a large portion of units are offered for short-term rental (30 days or less) or are used primarily for the purpose of vacation or recreational lodging. These projects are often informally referred to as &quot;condotels&quot; or resort condominiums. The information that FHFA is requesting through the RFI will help the Agency determine whether or not changes or clarifications to Enterprise policies are necessary to ensure more accurate and consistent project eligibility assessments.</p><p>“Today’s RFI will help FHFA take the appropriate steps to ensure that all sellers understand and apply the Enterprises’ eligibility requirements in a way that minimizes repurchase risk and the risk to the Enterprises,” said Director Mark Calabria.&#160;<br></p><p>​FHFA invites feedback on all aspects of the RFI within 60 days of publication, no later than July 5, 2021. Comments should be <a href="/AboutUs/Contact/Pages/Request-for-Information-Form.aspx" style="font-family&#58;&quot;source sans pro&quot;, sans-serif;font-size&#58;14px;font-style&#58;normal;">submitted electronically</a>&#160;or via mail to the Federal Housing Finance Agency, Office of Housing and Regulatory Policy, 400 7th Street SW, 9th floor, Washington, D.C., 20219.<br></p>​ <a href="/Media/PublicAffairs/PublicAffairsDocuments/RFI-Short-Term-Rental-Units.pdf"><strong>RFI&#160;</strong></a>5/6/2021 2:00:43 PMWashington, D.C. – The Federal Housing Finance Agency (FHFA) today issued a Request for Input (RFI) on Fannie Mae and Freddie Mac’s (the Enterprises) eligibility requirements for 1159https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Publishes Final Rule on Enterprise Resolution Plans340925/3/2021 4:00:00 AMNews Release<p><strong>​Washington, D.C.&#160;</strong>– The Federal Housing Finance Agency (FHFA) today published a <a href="/SupervisionRegulation/Rules/Pages/Resolution-Planning.aspx">final rule</a> that requires Fannie Mae and Freddie Mac (the Enterprises) to develop credible resolution plans, also known as “living wills.&quot; These resolution plans would facilitate a rapid and orderly resolution of the Enterprises should FHFA be appointed their receiver per the Housing and Economic Recovery Act of 2008 (HERA).</p><p>“After the capital rule, the finalization of the living will rule is one of the last major regulatory pieces needed to give effect to Congress' intent in HERA. Just like other large financial institutions, these plans will provide Fannie Mae, Freddie Mac and FHFA with a roadmap for preserving business continuity should they fail again,&quot; said Director Mark Calabria. “This rule helps create a stronger, more resilient housing finance system by protecting taxpayers and the mortgage market from harm if either Enterprise fails.&quot;</p><p>The<a href="/SupervisionRegulation/Rules/Pages/Resolution-Planning.aspx"> final rule</a>​ is similar to a rule issued by both the Federal Reserve Board and the Federal Deposit Insurance Corporation under the Dodd–Frank Wall Street Reform and Consumer Protection Act, which requires many large financial institutions to submit living wills. The Department of Treasury's 2019&#160;<a href="https&#58;//home.treasury.gov/system/files/136/Treasury-Housing-Finance-Reform-Plan.pdf">Housing Reform Plan</a>&#160;highlighted the need for a credible resolution framework for the Enterprises, and the Financial Stability Oversight Council&#160;<a href="https&#58;//home.treasury.gov/system/files/261/Financial-Stability-Oversight-Councils-Statement-on-Secondary-Mortgage-Market-Activities.pdf">endorsed</a>&#160;Enterprise living wills in the early fall of 2020.</p><p>Under the final rule, the Enterprises must demonstrate how core or important business lines would be maintained to ensure continued support for mortgage finance and stabilize the housing finance system, without extraordinary government support, to prevent an Enterprise from being placed in receivership, indemnify investors against losses, or fund the resolution of an Enterprise.</p><p>Link to <a href="/Media/PublicAffairs/Pages/Final-Rule-on-Resolution-Planning-for-the-Enterprises.aspx">Fact Sheet</a></p>5/3/2021 9:09:13 PMHome / Media / FHFA Publishes Final Rule on Enterprise Resolution Plans News Release 1826https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx
FHFA Announces New Refinance Option for Low-Income Families with Enterprise-Backed Mortgages339404/28/2021 4:00:00 AMNews Release<p><strong>​​​​​​Washington, D.C. </strong>– The Federal Housing Finance Agency (FHFA) announced today Fannie Mae and Freddie Mac (the Enterprises) will implement a new refinance option for low-income borrowers with Enterprise-backed single-family mortgages. Eligible borrowers will benefit from a reduced interest rate and lower monthly payment. FHFA estimates that borrowers who take advantage of the new refinance option could save an average of between $100 and $250 a month.&#160;&#160;</p><p>The new refinance option includes&#58;</p><ul><li>A requirement that the lender provides a savings of at least $50 in the borrower’s monthly mortgage payment, and at least a 50-basis point reduction in the borrower’s interest rate;</li><li>A maximum $500 credit from the lender for an appraisal if the borrower is not eligible for an appraisal waiver (the Enterprises will provide the lender a credit of $500 upon the loan<span style="font-style&#58;normal;">’</span>​s sale to an Enterprise); and&#160;</li><li>A waiver of the 50 basis point up-front <a href="/Media/PublicAffairs/Pages/Adverse-Market-Refinance-Fee-Implementation-Now-December-1.aspx">adverse market refinance fee</a> for borrowers with loan balances at or below $300,000.</li></ul><p>“Last year saw a spike in refinances, but more than 2 million low-income families did not take advantage of the record low mortgage rates by refinancing,” said Director Mark Calabria. “This new refinance option is designed to help eligible borrowers who have not already refinanced save between $1,200 and $3,000 a year on their mortgage payment.”&#160;<br></p><p>To qualify, a borrower must&#58;</p><ul><li>Have an Enterprise-backed 1-unit single-family mortgage that is owner-occupied;</li><li>Have an income at or below 80% of the area median income;</li><li>Have not missed a payment in the past six months, and no more than one missed payment in the past 12 months; and</li><li>Not have a mortgage with a loan-to-value ratio greater than 97%, a debt-to-income ratio above 65%, or a FICO score lower than 620.</li></ul><p>The Enterprises new refinance option will be available to eligible borrowers beginning this summer.&#160;<br></p><p><a href="/Media/PublicAffairs/PublicAffairsDocuments/Low-Income-Borrower-Refi_FactSheet_4282021.pdf">Link to Fact Sheet​​</a>​​<br></p>4/28/2021 2:01:02 PMEligible families on average would see monthly savings between $100 and $250 Washington, D.C. – The Federal Housing Finance Agency (FHFA) announced today Fannie Mae and Freddie Mac 11961https://www.fhfa.gov/Media/PublicAffairs/Pages/Forms/AllItems.aspxhtmlFalseaspx