FHFA Proposes Updated Minimum Financial Eligibility Requirements for Fannie Mac/Freddie Mac Seller/Servicers
The Federal Housing Finance Agency on Friday proposed updated minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers.
FHFA said the updated minimum financial requirements are intended to further strengthen the GSEs’ Seller/Servicer requirements and provide transparency and consistency of capital and liquidity required for Seller/Servicers with different business models. It said a key improvement from the minimum financial requirements established in 2015 is that the new Enterprise standards establish financial requirements for the servicing of Ginnie Mae mortgages.
FHFA said it is releasing the proposed requirements to provide transparency and consistency to industry participants and other stakeholders. FHFA and the Enterprises will engage with servicing industry participants, regulators and other stakeholders to obtain their feedback. FHFA will receive input on these requirements for 60 days at ServicerEligibility@fhfa.gov.
After reviewing industry and stakeholder feedback, FHFA anticipates finalizing these requirements in the second quarter of 2020, and anticipates that the requirements will be effective six months after they are finalized.
“We will be working with our members to voice our concerns in a comment letter to ensure that the final directive sets appropriate standards for IMBs, establishes proper incentives, and provides an appropriate phase-in period,” said Pete Mills, Senior Vice President of Residential Policy and Member Engagement with the Mortgage Bankers Association.
The proposed requirements can be accessed online at https://www.fhfa.gov/Media/PublicAffairs/Documents/Servicer-Eligibility-FAQs-1302020.pdf.