MBA Statement on FHFA’s Suspended Counterparty Program Re-Proposal
September 25, 2024
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WASHINGTON, D.C. (September 25, 2024) — MBA’s President and CEO Bob Broeksmit, CMB, issued the following statement regarding the Federal Housing Finance Agency’s (FHFA) announced re-proposal of amendments to its Suspended Counterparty Program (SCP) regulation:
“A re-proposal is a smart move, and we commend FHFA for its receptiveness to our strong opposition to the initial proposal, which would have punished counterparties for potentially minor civil or administrative sanctions.
“The re-proposal appears to address some of MBA’s significant concerns outlined in our joint comment letter. We are pleased to see the elimination of the proposed immediate suspension order, refinements that preserve due process, and a narrowing of the application of the SCP to violations of a certain magnitude or gravity.
“MBA and its single-family and multifamily members will review the re-proposal in greater detail and our forthcoming response will focus on any necessary improvements to the SCP regulation that strike an appropriate balance."