--FHFA: New Requirements To Help Mitigate Servicer-Related Risks
WASHINGTON (MNI) - Fannie Mae and Freddie Mac Wednesday unveiled final
counterparty standards, aimed primarily at nonbanks, that will dictate which
mortgage sellers and servicing firms that can do business with the mortgage
The financial and operational requirements, which are effective no later
than September 1 and December 31, respectively, were first proposed in January,
and are intended to reduce the risk exposure of both Fannie and Freddie.
"These updated operational and financial requirements will help mitigate
risks associated with changes in the servicing industry," Federal Housing
Finance Agency Director Melvin Watt said in a statement.