FHFA Proposes Rule On Conservatorship And Receivership Operations

Posted by Orb Staff on July 07, 2010 No Comments
Categories : Residential Mortgage

deral Housing Finance Agency (FHFA) has sent to the Federal Register a proposed rule to codify the terms of conservatorship and receivership operations for Fannie Mae, Freddie Mac and the Federal Home Loan Banks, pursuant to the Housing and Economic Recovery Act of 2008 (HERA). The proposed rule parallels many of the provisions in the Federal Deposit Insurance Corp. (FDIC) rules for conservatorships and receiverships. Among the key issues addressed in the proposed rule are the status and priority of claims, the relationships among various classes of creditors and equity-holders, and the priorities for contract parties and other claimants under conservatorships or receiverships. "This regulation is designed to provide clarity to the regulated entities, creditors and the markets," says the FHFA's acting director, Edward J. DeMarco. "Publication of this rule for comment has no impact on the current conservatorship operations and is not a reflection of the condition of Fannie Mae, Freddie Mac or the Federal Home Loan Banks." The [link=http://www.fhfa.gov/webfiles/15890/Proposed_Rule_on_C.pdf]proposed rule[/link] has been posted on the FHFA's website. Public comments are due 60 days from the date of publication in the Federal Register. SOURCE: [link=http://www.fhfa.gov/webfiles/15888/ConservatorshipReceivership.pdf]Federal Housing Finance Agency

Register here to receive our Latest Headlines email newsletter




Leave a Comment