Federal Register #2590-AB23

FHFA Proposed Rule Amendment for Suspended Counterparty Program

This opportunity concerns a proposed regulatory amendment by the Federal Housing Finance Agency (FHFA) regarding its Suspended Counterparty Program (SCP): - The FHFA seeks to amend the SCP regulation by removing the term "reputational harm" - The change aims to clarify that counterparty risk supervision is based on material and measurable risks, such as financial harm or threats to safe and sound operations - The amendment affects the following regulated entities: - Federal Home Loan Mortgage Corporation (Freddie Mac) - Federal National Mortgage Association (Fannie Mae) - Federal Home Loan Banks - The proposed rule outlines requirements for reporting covered misconduct and the process for issuing suspension orders - No products, services, OEMs, or vendors are being procured or referenced - The FHFA is requesting public comments on the proposed amendment and its potential impact

Description

The Federal Housing Finance Agency (FHFA) is proposing to amend its Suspended Counterparty Program (SCP) regulation by removing the term "reputational harm." This amendment aims to eliminate redundancy and clarify that FHFA's supervision of counterparty risk is based on material and measurable risks. The proposed rule affects the Federal Home Loan Mortgage Corporation, Federal National Mortgage Association, and Federal Home Loan Banks, requiring reports on covered misconduct and allowing suspension orders based on financial harm risks. Comments on the proposed rule are due by August 12, 2026.

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