FHFA Authorizes Funding for Housing Trust Fund, Capital Magnet Fund
The Federal Housing Finance Agency (FHFA) today sent letters to Fannie Mae and Freddie Mac, directing them to begin setting aside and allocating funds to the National Housing Trust Fund (NHTF) and the Capital Magnet Fund (CMF). Contributions to the NHTF and CMF were suspended since 2008, when Fannie Mae and Freddie Mac, the intended funding sources under the Housing and Economic Recovery Act of 2008 (HERA), were placed into conservatorship. The FHFA released an interim final rule to implement a statutory prohibition against the government-sponsored enterprises passing the cost of allocations through to the originators of loans they purchase or securitize.
Tune into the Dec. 16 episode of the Tax Credit Tuesday podcast to learn more.