MBA Weighs In With FHFA on Proposed Changes to Suspended Counterparty Program

The Mortgage Bankers Association weighed in with the Federal Housing Finance Agency Aug. 12 regarding proposed changes to FHFA’s Suspended Counterparty Program (SCP).

MBA told the agency it supports FHFA’s proposed amendment to the SCP to remove “reputational harm” as a criterion for suspension. “We believe that the term is redundant because covered misconduct already requires a demonstrated risk of financial harm or threat to an Enterprise’s safety and soundness,” the letter said. “MBA agrees that eliminating the subjective and ambiguous reputational harm standard will help ensure suspension decisions are based on material and measurable risks while continuing to protect the Enterprises from bad actors.”