FHFA proposes changes to suspended counterparty program

FHFA proposes changes to suspended counterparty program

The Federal Housing Finance Agency (FHFA) wants to drop “reputational harm” as a basis for suspending firms and individuals that do business with Fannie Mae, Freddie Mac and the Federal Home Loan Banks. In a notice of proposed rulemaking published Monday in the Federal Register, the agency said removing the reputational-harm standard would “eliminate redundancy” and reinforce that counterparty oversight should rest on “material and measurable ri…