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3 days ago
7
Another day, another series of policy changes at the Federal Housing Finance Agency (FHFA).
On Wednesday, the regulator directed Fannie Mae and Freddie Mac to revise their respective radon policies for multifamily properties. The FHFA also issued an order ending a requirement for the government-sponsored enterprises (GSEs) to engage in joint discussions and share information related to energy building code standards.
In November 2022, the FHFA issued a directive requiring the GSEs to adopt and implement additional changes to their radon policies for multifamily properties. In this week’s order, FHFA Director Bill Pulte said the radon policy requirements “add time, expense and operational complexity to Enterprise transactions, and the requirements are no longer consistent with the FHFA’s priorities and objectives as conservator.”
On Thursday, Pulte directed the Federal Home Loan Banks (FHLBanks) to rescind a 2024 bulletin that provides guidance for managing climate-related risks. Pulte’s order describes climate-related risk as a “transverse risk that manifests itself through existing risk types, including credit risk; whereas, risks to the FHLBank System driven by climate-related events are managed through the FHLBanks’ existing frameworks.” He noted that additional frameworks create unnecessary expenses.
Additionally, Pulte rescinded an order for Fannie and Freddie to require borrowers to meet certain minimum standards for rental payment flexibility and lease notices at multifamily properties.
Earlier this week, the FHFA terminated UDAP guidance as well as special purpose credit programs (SPCPs) from Fannie and Freddie. Although they are relatively small programs — the GSEs combined to purchase about 15,000 SPCP-driven mortgages in 2023 — they were relatively popular with lenders that sought to increase lending in historically underserved communities.
There was a 10% workforce reduction announced last week that resulted in the closure of two FHFA departments — its Research and Statistics Division and its Division of Public Interest Examination (DPIE).
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