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.”

 

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