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FHFA updates minimum financial eligibility requirements
The Federal Housing Finance Agency (FHFA) Friday announced proposed updated minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers. The new requirements will also apply to servicing for Ginnie Mae mortgages and non-depository financial institutions.
According to the agency, the updated requirements intend to strengthen the government-sponsored enterprises' seller/servicer requirements, provide transparency and consistency of capital, and liquidity required for sellers/servicers with different business models. The proposed requirements will be open for public comment for 60 days, and the agency has indicated that these requirements will be finalized in the second quarter of 2020.
In a letter sent last month to FHFA Director Dr. Mark Calabria, NAFCU President and CEO Dan Berger expressed concerns that credit unions are being disadvantaged by the government-sponsored enterprises’ pricing methodology. In response to the FHFA’s recent report, "Fannie Mae and Freddie Mac Single-Family Guarantee Fees in 2018", Berger suggests that further action is needed to ensure fair pricing.
NAFCU has previously met with Calabria, most recently attending a joint trades meeting with Calabria in October to further discuss housing finance reform efforts and ways to ensure fair pricing and access.
NAFCU-member credit unions also raised pricing concerns during a meeting with Calabria last June. Additional insights from that meeting can be found in NAFCU's member-only CFO and Compliance, Risk & BSA Networks. NAFCU has also shared its core principles for housing finance reform with lawmakers and administration officials.