Washington, D.C. – Today, the Federal Housing Finance Agency (FHFA) re-proposed minimum financial eligibility requirements for Fannie Mae and Freddie Mac (the Enterprises) seller/servicers. This update will strengthen, and provide transparency and consistency of, required capital and liquidity for seller/servicers with different business models.
"In an ongoing commitment to the safety and soundness of our housing finance system, the Enterprises must consider risk exposure from their contractual relationships with seller/servicers and assess, monitor, and take appropriate actions to address the risks to which they are exposed in their business relationships with third parties," said FHFA Acting Director Sandra L. Thompson.
A key improvement from the minimum financial requirements established in 2015 is that the re-proposed financial requirements differentiate between the servicing of Ginnie Mae mortgages and the servicing of Enterprise mortgages. Additionally, FHFA has incorporated feedback from the Agency's 2020 proposal, as well as lessons learned from market events in reaction to the global COVID-19 pandemic. This proposal also reflects coordination with other federal agencies.
FHFA and the Enterprises will engage with servicing industry participants, regulators, and other stakeholders to obtain their feedback. FHFA will receive input on these requirements for 60 days at ServicerEligibility@fhfa.gov and anticipates finalizing them in the second quarter of 2022. Most of the requirements will be effective six months after they are finalized, and some will be phased in over longer periods of time.
Re-Proposal to Enhance Eligibility Requirements for Enterprise Single-Family Seller/Servicers