FHFA Suspends Second Home, Investment Loan Limitations; Purchases Spring Back; Foreclosures Lowest in 20+ Years
The Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury announced late Tuesday that they were suspending some of the provisions that had been added to the Preferred Stock Purchase Agreements (PSPAs) on last January. The PSPA is the legal agreement between Treasury and Fannie Mae and Freddie Mac governing the terms of the line of credit given to the GSEs in 2008 when they were put into conservatorship. FHFA acting director Sandra L. Thompson said, "This suspension will provide FHFA time to review the extent to which these requirements are redundant or inconsistent with existing FHFA standards, policies, and directives that mandate sustainable lending standards." The January 14 amendments were said to bring the amount of capital the companies are permitted to retain
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