Today, the Federal Housing Finance Agency (FHFA) announced that it is seeking comments on a notice of proposed rulemaking that requires Fannie Mae and Freddie Mac (the Enterprises) to provide advance notice to FHFA of new activities and obtain prior approval before launching new products. Additionally, the proposed rule establishes revised criteria for determining whether a new activity requires notice to FHFA and for determining if that activity is a new product that merits public notice and comment. The proposed rule will replace the interim final rule that has been in effect since 2009.
The proposed rule’s requirements would also outline the process for FHFA review of a new activity and the timelines for approving a new product, including issuing a public notice and requesting public comment about a potential new product.
“The proposed rule will enhance the safety and soundness of the secondary mortgage market by ensuring the Enterprises adhere to their statutory missions,” said Director Mark Calabria. “This proposed rule is an important step as the Agency works to end the Enterprises’ conservatorships.”
The proposed rule would implement section 1321 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992, as amended by section 1123 of the Housing and Economic Recovery Act of 2008.
FHFA invites interested parties to submit comments on the notice of proposed rulemaking within 60 days of its publication in the Federal Register via FHFA.gov or via mail, FHFA, Eighth Floor, 400 Seventh Street, SW, Washington, DC 20219.