FHFA proposes brand-new exemption to limitations on personal transfer cost covenants

The Federal Housing Finance Agency today proposed to modify its guideline restricting Fannie Mae, Freddie Mac and the Federal Home Loan Banks from acquiring, buying, accepting as security, or otherwise handling home mortgages on residential or commercial properties overloaded by specific kinds of personal transfer cost covenants, or PTFCs, and in associated securities, based on specific exceptions. The proposed guideline would develop an extra exception to the limitations for loans on residential or commercial properties with PTFCs, and associated securities, if the loans satisfy specific shared equity loan program requirements for resale limitation programs in FHFA’s Duty to Serve Underserved Markets Regulation.