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Financial Services Law Insights and Observations

Treasury, FHFA suspend provisions of 2021 PSPAs

Agency Rule-Making & Guidance Department of Treasury FHFA Fannie Mae Freddie Mac GSE

Agency Rule-Making & Guidance

On September 14, the U.S. Treasury Department and FHFA announced the suspension of certain requirements that were added on January 14 to the Preferred Stock Purchase Agreements (PSPAs) between Treasury and Fannie Mae and Freddie Mac (collectively, “GSEs”). According to the announcement, “FHFA will continue to measure, manage, and monitor the financial and operational risks of the Enterprises to ensure that they operate in a safe and sound manner and consistent with the public interest.” In addition, during the suspension, the FHFA will review the requirements and consider other revisions, and notes that the suspensions “do not affect the [GSEs] ability to build or retain capital.” 

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