Skip to main content

FHFA Issues Resolution Planning Final Rule For GSEs

May 04, 2021
FHFA headquarters
Director of Events

The Federal Housing Finance Agency is publishing a final rule that requires Fannie Mae and Freddie Mac to develop plans to facilitate their rapid and orderly resolution in the event FHFA is appointed receiver, according to a press release. The move is being made to prepare the enterprises in case they exit from conservatorship.

According to the FHFA, a resolution planning rule is an important part of FHFA’s ongoing effort to develop a robust prudential regulatory framework for the enterprises, including capital, liquidity, and stress testing requirements, as well as enhanced supervision, which will be critical to FHFA’s supervision of the Enterprises particularly in the event of an exit from conservatorship.

By requiring the enterprises to develop resolution plans would support FHFA’s efforts as receiver for the Enterprises to, among other things, minimize disruption in the national housing finance markets by providing for the continued operation of an Enterprise’s core business lines by a limited-life regulated entity; ensure that private-sector investors in Enterprise securities, including Enterprise debt, stand to bear losses in accordance with the statutory priority of payments while minimizing unnecessary losses and costs to these investors.

In addition, resolution planning will help foster market discipline in part through FHFA publication of “public” sections of Enterprise resolution plans. 

Click here to read more about the impending final rule.

About the author
Director of Events
Navi Persaud is Director of Events at NMP.
Published
May 04, 2021
Co-Founder Mat Grella Terminated From NEXA

NEXA CEO Kortas states negotiations regarding the buyout will continue.

Mar 27, 2024
Comings And Goings At AmeriHome

Chief Operating Officer John Hedlund announced his retirement on Thursday in a LinkedIn post.

Mar 22, 2024
Rocket's Tim Birkmeier To Retire

Birkmeier is bidding farewell after a 28-year career at Rocket Companies.

Mar 21, 2024
How NAR’s Settlement Impacts Homebuying

While the settlement's silver lining is that homes are expected to become more affordable, many uncertainties loom over the housing market.

Mar 19, 2024
NAR Reaches $418 Million Settlement

The association agreed to give home sellers the option of compensating agents.

Mar 15, 2024
U.S. Non-Bank Mortgage Lenders Surge Amid Industry Consolidation, Fitch Ratings Reports

As smaller players exit the market, scaled originators like UWM and PennyMac Financial dominate, but challenges persist with low origination volume and pressured margins amidst rising interest rates.

Mar 14, 2024