FHFA Authorizes Funding for Housing Trust Fund and Capital Magnet Fund

On December 11, 2014, the Federal Housing Finance Agency (FHFA) sent letters to Fannie Mae and Freddie Mac, directing them to begin setting aside and allocating funds to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). (Click here for the letter sent to Fannie Mae and click here for the letter sent to Freddie Mac.) Contributions to the NHTF and CMF have been suspended since 2008, when Fannie Mae and Freddie Mac were placed into conservatorship. The FHFA released an interim final rule to implement a statutory prohibition against the government-sponsored enterprises passing the cost of allocations through to the originators of loans they purchase or securitize.

Comments are closed.