The Federal Housing Finance Agency announced Monday that it will not implement new financial eligibility requirements for mortgage lenders that service or sell loans to Fannie Mae and Freddie Mac.
The new requirements, announced Jan. 31, were to be implemented this month.
“Due to recent market events, the Federal Housing Finance Agency … will be re-proposing the updated minimum financial eligibility requirements for Fannie Mae and Freddie Mac Seller/Servicers,” FHFA said in a statement. “FHFA has determined that it is prudent to work with the Enterprises to reassess and re-propose these requirements, including incorporating lessons learned from the evolving COVID-19 national emergency.”
The revised requirements would have forced mortgage sellers and servicers to maintain a base net worth of $2.5 million. Additionally, they would have been required to maintain 35 basis points of the unpaid principal balance for Ginnie Mae mortgages (up from 25 basis points) and 25 basis points of the unpaid principal balance for all other one- to four-family residential loans serviced.
Non-banks liquidity would have risen from 3.5 basis points to 4 points for Fannie and Freddie servicing and 10 basis points for Ginnie Mae.
See the original proposal here.