April 16, 2024

FHFA: New Product Notice Published for Freddie Mac Second Mortgage Proposal

Today, the Federal Housing Finance Agency (FHFA) sent to the Federal Register a notice of a proposed new product from Freddie Mac to begin purchasing certain single-family closed-end second mortgages. 

“The proposed activity is intended to provide homeowners with a cost-effective alternative for accessing the equity in their homes,” said FHFA Director Sandra L. Thompson. “Reviewing and considering comments from the public will be a critical component of our review as the Agency exercises its statutory responsibility to evaluate new Enterprise products.” 

Freddie Mac proposes to purchase closed-end second mortgages on properties for which it already holds the first mortgage. FHFA has determined this to be a new product that merits public notice and comment about whether it is in the public interest. 

FHFA invites interested parties to provide written feedback on the proposed new product. Comments may be submitted via FHFA’s website or by email to RegComments@fhfa.gov

Once the Federal Register publishes the notice, a statutory 30-day comment period begins. After that 30-day period has ended, FHFA has a statutory 30-day period to make a final decision as to whether to approve the proposed new product. 

Link to Notice of Proposed Enterprise New Product

Link to Prior Approval of Enterprise Products Final Rule

Link to Final Rule Fact Sheet

This post was originally published here.