Posted To: MND NewsWire
A new policy paper from the Urban Institute (UI) looks at the recent amendments to the senior preferred stock purchase agreement (PSPA) agreed to by outgoing Treasury Secretary Steven Mnuchin and Mark Calabria, Director the Federal Housing Finance Agency (FHFA) on January 14, 2021. The PSPA governs Treasury’s financial relationship with the GSEs Fannie Mae and Freddie Mac. The changes were intended to enable the eventual release of the GSEs from conservatorship by allowing them to build capital and provides milestones for their release. The changes also serve to constrain the GSEs’ activities well after their release by putting limits on their business practices including limits on the amount of “high risk” mortgages they can purchase as well as those that finance second homes or investor properties…(read more)
