Last week, several top execs at Freddie Mac and the FHFA were fired, including Freddie Mac CEO Diana Reid, just six months into the job. That alone was enough to turn heads across the mortgage and housing sectors.
This week, FHFA Director Bill Pulte took to X to announce another round of changes, discontinuing several programs at Fannie Mae and Freddie Mac.
Among the most notable is the termination of Special Purpose Credit Programs (SPCPs), which were designed to help underserved borrowers access home financing.
Also on the chopping block:
- Climate risk management rules
- Rental payment flexibility for multifamily leases
- Fannie Mae’s policy to repair foreclosure properties before resale
What’s not changing is conforming loan limits, according to Pulte.
Summary of Pulte’s FHFA Changes
Here’s a quick reminder of what Pulte did last week as FHFA Director:
- Fired 14 board members across Fannie Mae and Freddie Mac.
- Appointed himself chairman of both boards.
- Placed dozens of employees on leave.
- Pushing for a return-to-office mandate for GSE employees.
This week, Putle shared several FHFA orders on X. These include:
- Order Rescinding Directive on Multifamily Lease Policies
- Order Rescinding Advisory Bulletin 2024-06: Regulated Entity Unfair or Deceptive Acts or Practices Compliance
- Order Rescinding Advisory Bulletin 2024-01: Climate-Related Risk Management
- Order Issuing Directive Terminating “Repair All” REO Strategy
- Order Issuing Directive to Terminate Special Credit Purpose Programs
- Regulatory Waiver of Enterprise Equitable Housing Finance Planning Requirments
- Order Issuing a Directive Closing Directive on Standardization of Enterprise Radon Policies
- Order Issuing a Directive Closing Directive Single Family Borrower Education on Energy Efficiency
- Order Rescinding Advisory Bulletin 2024-04: Federal Home Loan Bank System Climate-Related Risk Management
Conforming Loan Limits Hold Steady
While there are plenty of changes happening, confirming loan limits are staying put for now.
“There are no plans to do anything as it relates to the conforming loan limit,” Pulte said this week.
That limit currently sits at $806,500, up 5.2% from last year. Some expected a cut under the new administration, but Pulte’s confirmation provides temporary certainty for borrowers and lenders in high-cost markets.
What’s Next?
Whether these moves are seen as overdue reform or rapid-fire disruption, the pace and scale of change under Pulte are raising new questions about the long-term future of Fannie and Freddie. Many in the industry continue to ask whether the GSEs are on a path to privatization.
Stay tuned for more.
