Select Page

This post was originally published on this site

When it comes to continuing suspensions of policies that roiled the mortgage market in 2021, the ball is now in the U.S. Treasury‘s court. The Federal Housing Finance Agency and Treasury agreed in September 2021 to end limits imposed by the Trump administration on overall volume and the kind of mortgages lenders’ could sell to Fannie Mae and Freddie Mac. The limits, set in January 2021 by then-FHFA Director Mark Calabria and Treasury Director Steven Mnuchin, had infuriated the mortgage industry, and was one of the first items Sandra Thompson tackled after she became acting director of the agency. But instead of wiping out those provisions for good, the FHFA and Treasury elected to hit pause. Whether that suspension will continue is something of a mystery for industry stakeholders. Those suspensions are set to lapse Sept. 14 and six months from whenever the Treasury gives the FHFA notice, whichever is later. A Treasury spokesperson said both conditions have to be satisfied for the suspensions to lift. A Treasury spokesperson said the Treasury would not need FHFA’s permission to give notice to terminate the suspensions. FHFA said it has not received notice from the Treasury. A spokesperson for FHFA said that terminating the suspensions would be a “coordinated process,” and conversations about changes to the Preferred Stock Purchase Agreements (PSPAs) are regularly conducted at the “highest levels.” Formal changes to the document that contains the provisions — the PSPAs — are haggled over by the Treasury and the FHFA. Negotiating on

The post Treasury holds the cards on paused investor property and cash window caps appeared first on Emerald Coast Gazette – NWF News.

Pin It on Pinterest

Share This