FHFA, Fannie and Freddie Launch Representation and Warranty Framework

On September 11, the FHFA announced that Fannie Mae and Freddie Mac are launching a new representation and warranty framework for conventional loans sold or delivered on or after January 1, 2013.  The framework’s objective is to clarify lenders’ repurchase exposure and liability on future deliveries.  Under the new framework: (i) lenders will be relieved of some repurchase obligations for loans that meet specific payment requirements; (ii) HARP loans will be eligible for representation and warranty relief after 12 months’ of acceptable payment history; (iii) information about exclusions from representation and warranty relief will be detailed; and (iv) Fannie Mae and Freddie Mac will make available for lenders a range of tools to improve loan quality. FHFA Release.

First Winning Bidder Announced for FHFA REO Pilot Initiative

On September 10, the FHFA announced that Pacifica Companies, LLC has purchased 699 Fannie Mae properties in Florida as part of the REO pilot initiative.  The FHFA will announce the winning investors for properties in other areas upon closing of the transactions in the coming weeks. FHFA Release.

CFTC Seeks Public Comment on ICE Clear Europe Request about Futures

On September 11, the CFTC requested public comment on a petition from ICE Clear Europe Limited for an order pursuant to Section 4d(a) of the Commodity Exchange Act which would permit ICE Clear Europe and its clearing members that are registered futures commission merchants to: (i) commingle in a futures customer account positions in futures and options, and foreign futures and foreign options, and related customer money, securities and property; and (ii) portfolio margin such futures and options, and foreign futures and foreign options, in the futures customer account.  Comments should be submitted by September 25. CFTC Release.

CFTC Reponses to Questions on Timing of Swap Dealer Registration Rules

On September 10, the CFTC responded to questions on the timing of when entities will be required to register as swap dealers.  The CFTC issued FAQs to help market participants better understand the requirements and timing of the rules. CFTC Release.