In particular, one clause could rankle mortgage industry participants: HUD also agreed to notify FHFA of any Fair Housing Act complaints related to counterparties of Fannie and Freddie.
Nevertheless, rumors are circulating that the Biden administration is preparing to test the legal waters by having the FHA and VA extend their REO eviction moratoriums to the end of the year. These were also scheduled to end on Saturday. If that were to happen, most observers believe FHFA would follow suit.
To meet FHFA’s new mission-driven purchase volume requirements, Freddie Mac will modify its guarantee-fee discounts for low-, very-low- and moderate-income loans.
Questions posed by the FHFA include whether the GSEs should use appraisal waivers and how lenders might manipulate automated underwriting systems when seeking an appraisal wavier from the GSEs.
Justice Breyer characterized the net worth sweep as the nationalization of the GSEs. The government and the court-appointed amicus curiae disagreed, describing it as a simple renegotiation of a contract.