Public Comment Comment Letter to the FHFA on Enterprise Seller/Servicer Eligibility Requirements
Karan Kaul, Laurie Goodman, Ted Tozer
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Following a withdrawal in 2020 due to the pandemic, the Federal Housing Finance Agency recently re-issued a proposal with new financial eligibility requirements for Fannie Mae and Freddie Mac seller/servicers. The effort is the latest in a series of regulatory proposals agencies have released to bolster financial requirements for nonbank mortgage servicers or independent mortgage banks. Such efforts are needed to ensure these entities remain stable during times of market turbulence. This brief explores the proposed changes, such as the minimum tangible net worth, the new capital ratio, and the base liquidity they must maintain. In addition, it explores ways in which the proposed requirements could be strengthened.

Research Areas Housing finance
Tags Housing finance reform Housing markets Agency securitization
Policy Centers Housing Finance Policy Center