Amendment Reinstating ‘‘Grandfather’’ Exceptions to Restrictions on Private Transfer Fee Covenants
Amendment Reinstating ‘‘Grandfather’’ Exceptions to Restrictions on Private Transfer Fee Covenants Final Rule
FOR FURTHER INFORMATION CONTACT: Sara L. Todd, Assistant General Counsel, Office of General Counsel (OGC), (202) 649-3527, sara.todd@fhfa.gov, Federal Housing Finance Agency, 400 Seventh Street SW, Washington, DC 20219. This is not a toll-free number. The mailing address is: Federal Housing Finance Agency, Fourth Floor, 400 Seventh Street SW, Washington, DC 20219. For TTY/TRS users with hearing and speech disabilities, dial 711 and ask to be connected to the contact number above.
SUMMARY: The Federal Housing Finance Agency (FHFA) is making a technical amendment to its Private Transfer Fee Covenants (PTFC) Regulation. The PTFC Regulation restricts FHFA's regulated entities—the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) (collectively, the Enterprises), and the Federal Home Loan Banks (Banks)—from purchasing, investing in, accepting as collateral, or otherwise dealing in mortgages on properties encumbered by certain types of PTFCs, or related securities, subject to certain exceptions. The technical amendment reinstates timing and transitional applicability (“grandfather”) exceptions that were removed by FHFA's 2024 amendments to the PTFC Regulation. The reinstated “grandfather” exceptions are applicable nunc pro tunc beginning July 16, 2012.
DATES: Effective date: The final rule is effective March 17, 2026.