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74 74 INVESTMENT GOVERNMENT PROPERTY PRESERVATION TECH Journal FHFA TO RE-PROPOSE FINANCIAL REQUIREMENTS FOR GSEs e Federal Housing Finance Agency (FHFA) announced that it will be re-proposing the updated minimum financial eligibility requirements for Fannie Mae and Freddie Mac. "FHFA has determined that it is prudent to work with the Enterprises to reassess and re-propose these requirements, including incorporating lessons learned from the evolving COVID-19 national emergency," the Agency said in a release. e FHFA told DS News that it would not provide additional comments. FHFA's original proposal was made on January 31, 2020, and "will not be finalized and implemented this month as planned." e proposed financial requirements released earlier this year sought to improve seller/servicer standards and provide transparency and consistency of the capital and liquidity required with different business models. e January release from FHFA stated, "A critical improvement from the minimum financial requirements established in 2015 is addressing the risk factors related to servicing Ginnie Mae mortgages. e updated requirements improve the safety and soundness of the Enterprises by strengthening Seller/ Servicer counterparties in the event of an economic downturn." "Continuing its path to end conservatorship for the GSEs, the FHAFA announced in February that it selected Houlihan Lokey Capital, Inc., as its financial advisor to assist in the development of a plan to conservatorship of Fannie Mae and Freddie Mac." e agreement between the FHFA and Houlihan Lokey has up to one year to produce a plan to end privatization of the GSEs. e FHFA's report states Houlihan Lokey will consider business and capital structures, market impacts, timing, and available capital raising alternatives among other items. "Hiring a financial advisor is a significant milestone toward ending the conservatorships of the Enterprises," FHFA Director Dr. Mark Calabria said. "e next major milestone for FHFA is the re-proposal of the capital rule, which will happen in the near future." e contract between the FHFA and the firm is $9 million for the first year. e FHFA has options to extend for an additional four- and-a-half years. e total contract is not to exceed $45 million.