Treasury and the Federal Housing Finance Agency ("FHFA") suspended certain requirements of the preferred stock purchase agreements ("PSPAs") between Treasury and Fannie Mae and Freddie Mac (the government-sponsored enterprises, or "GSEs"). Treasury and FHFA stated that the suspension of these PSPA requirements do not affect the GSEs' "ability to build or retain capital."

In the executed Fannie Mae letter and Freddie Mac letter, Treasury and FHFA suspended from the amended PSPAs:

  • Section 5.12(c), which states that the seller will not acquire single-family mortgage loans with an unpaid principal balance of more than $1.5 billion;
  • Section 5.13, which sets the terms for multifamily mortgage purchase activity; and
  • Sections 5.14(a) and 5.14(b), which set the terms for when a seller cannot acquire a single-family mortgage and the limits on acquiring single-family mortgage loans, respectively.

The suspensions will terminate on the later of September 14, 2022, or six months after Treasury notifies the GSEs. FHFA stated that it will review the suspended requirements during this time and "consult with Treasury on any recommended revisions."

Primary Sources

  1. Treasury Press Release: Treasury Department and Federal Housing Finance Agency Suspend Certain Requirements under Preferred Stock Purchase Agreements with Fannie Mae and Freddie Mac
  2. Treasury Executive Letter Agreement for Fannie Mae
  3. Treasury Executive Letter Agreement for Freddie Mac

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