Due to Freddie Mac and Fannie Mae’s status as a government-sponsored enterprises, the Federal Housing Finance Agency (FHFA) has announced a new rule to protect the public and maintain high standards of financial safety and soundness.
According to an announcement from the FHFA, the GSE’s will have to provide advance notice to the agency—and receive approval—before offering any new products or services. The final rule defines what categories of activities would be considered “new,” and the FHFA will determine if such new products or services rise to the level of needing public comment.
The rule also establishes a public disclosure requirement, requiring the FHFA to publish its determinations on requested new activities or services.
“The final rule clarifies how FHFA will conduct assessments of new activities and products proposed by the Enterprises,” said Director Sandra L. Thompson. “Enterprise activities can have significant effects on the mortgage market, consumers, and industry stakeholders, and today’s rule further refines FHFA’s process to ensure activities continue to serve the Enterprises’ mission while maintaining high standards of safety and soundness.”
The final rule implements Section 1321 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by Section 1123 of the Housing and Economic Recovery Act of 2008.
Click here to see the source text in the Federal Register.