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63 February 2025 J O U R N A L February 2025 » FHFA AND TREASURY AMEND PREFERRED STOCK PURCHASE AGREEMENTS T he Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury have announced amendments to the Preferred Stock Purchase Agreements (PSPAs). FHFA and Treasury have agreed to delete the provisions of the PSPAs that were suspended pursuant to their September 14, 2021, Letter Agreement and to make other modifications. These changes provide Fannie Mae and Freddie Mac (the GSEs) with more f lexibility to better support access to homeownership and rental housing. In addition, the amendments clarify that the GSEs must meet the capital requirements established by FHFA as amended over time. The amendments also include technical changes or clarifications applicable to the GSEs' financial reporting. President and CEO of the Mortgage Bankers Association (MBA), Bob Broek- smit, CMB, said: "MBA believes strong- ly that any efforts to remove Fannie Mae and Freddie Mac (the GSEs) from their federal government conservator- ships must fully consider the impact on single-family and multifamily housing markets and overall financial stability. This includes the critical move that Congress establishes an explicit federal backstop for mortgage-backed securities." At the time the original PSPAs were executed in September 2008, written Treasury consent was required before the conservatorships could be termi- nated. The new amendments restore that consent right. FHFA and Treasury also agreed that the path to ending the conservatorships should be based on the financial condition of the GSEs and the potential impact of termination on the housing market. Accordingly, FHFA and Treasury have agreed to a process for eventual public input on termina- tion options and potential impacts, which is addressed in a separate side letter between the agencies. "The Enterprises play a vital role in the national housing finance system," FHFA Director Sandra L. Thompson said. "Today's announcement will reassure stakeholders that the Enter- prises' eventual release from conserva- torship will follow a methodical process intended to minimize disruption to the housing and financial markets." The process set forth in the side let- ter, which applies to terminations other than receivership and includes seeking public input, briefing the Financial Stability Oversight Council (FSOC), and analyzing the market impact of different paths to ending the conserva- torships before seeking Treasury con- sent, is intended to facilitate an orderly termination of the conservatorships and to ensure that the impact of the termination on the GSEs, the housing market, and U.S. financial stability is considered. "Conservatorship was never in- tended to be perpetual, and we support efforts toward the GSEs' release," Broeksmit added. "We appreciate the rationale behind today's changes to the PSPAs, which are designed to foster transparency across govern- ment agencies, share market impact analysis, and give appropriate time for market participants to provide feed- back on proposed reforms. The GSEs are integral to homeownership and rental housing, and the transition to a post-conservatorship era must be done the right way with an ample timeline. MBA stands ready to work with the incoming Trump administration at the White House, Treasury Department, and FHFA—and also with the Con- gress—to ensure that happens." FEATURE STORY THE BEST SOLUTION IS NOT ALWAYS THE SHINY NEW TOY While it can be debated as to how much default and foreclosure activity lies ahead, default servicers must carefully examine their tech systems to keep ahead of the curve. FEATURE STORY DRIVING GROWTH: LEVERAGING HOME EQUITY TO EXPAND LOAN OFFICER OPPORTUNITIES In a tight market, LOs seeking to diversify their offerings are turning to home equity products to expand their role and become a financial guide for life. COUNSEL'S CORNER FACING THE FORECLOSURE AND BANKRUPTCY CHALLENGES OF TODAY Robert S. Kahane, a foreclosure and bankruptcy attorney with more than 30 years under his belt, discusses current compliance issues related to loan servicing process enhancements. EXPERT INSIGHTS TONY JULIANELLE, CEO OF REAL ATLAS ESTATE discusses current market trends and the forces that will shape the landscape in the industry. ALSO IN THIS ISSUE: Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS AUGUST 2024 Magazine The Burden of Proof MortgagePoint profiles Bron, Inc., a company that has carved out a unique niche with a focus on crucial but often-overlooked tasks such as managing registrations, utilities, and HOA verifications. Subscribe to MortgagePoint and MortgagePoint Digital now! Call 800.856.8060 to take advantage of our special offer! Experts you trust. People you know. News you want. MortgagePoint is putting essential mortgage market news at your fingertips with our new digital edition, now available online via your smartphone, tablet, or computer. Enjoy the magazine at your desk, and tap into MortgagePoint Digital's easily accessible platform anywhere, anytime. Committed to giving originators, servicers, and all lending professionals access to smarter perspectives, MortgagePoint believes it's time to think differently about the mortgage industry. Because the American Dream is evolving . . . are you? Brought to you by & YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS JULY 2024 Magazine White House Main Street America TO FROM THE As the November elections near, what ripple effects will the next Administration have on the housing industry? MortgagePoint gathered a panel of experts to dig deeper into the impact of the Presidential Elections and potential changes in the White House. TO YOUR TRUSTED SOURCE FOR MORTGAGE BANK ING AND SERVICING NEWS OCTOBER 2024 Magazine The Industry Leaves Its Mark at Five Star Conference Exclusive coverage from this year's Five Star Conference, including profiles of the Lifetime Achievement honoree, the Women in Housing Leadership Award recipients, and more. THE 2024 FIVE STAR CONFERENCE & EXPO SEPTEMBER 24-26, 2024 DALLAS, TEXAS