The Federal Housing Finance Agency's revised proposal for the Suspended Counterparty Program aims to balance market stability with concern over harsh penalties for minor infractions.
Three major trade groups expressed their concerns that the proposed changes could lead to overly severe punishments for lenders over minor civil missteps, urging reconsideration.
FHFA Director Sandra L. Thompson emphasized the importance of stakeholder feedback in shaping the renewed plan, aiming to maintain liquidity and safety in the housing finance sector.
The original SCP proposal may have exposed lenders and servicers to excessive penalties, a point highlighted by industry groups as a threat to mortgage market functionality.
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