The Federal Housing Finance Agency recently has reversed course in two areas affecting its oversight of Fannie Mae and Freddie Mac.
The agency rescinded a 2024 advisory bulletin asserting its authority to regulate unfair or deceptive acts or practices (UDAP) by Fannie Mae and Freddie Mac. FHFA said that enforcement of unfair or deceptive acts or practices should remain with the Federal Trade Commission, which is the primary administrator of Section 5 of the FTC Act. FHFA emphasized its focus on the safety and soundness of the GSEs, rather than duplicating existing consumer protection authority.
The rescinded bulletin says FHFA would evaluate whether the GSE’s actions or inactions could be considered unfair or deceptive under established standards and would hold the enterprises accountable if they facilitated or failed to prevent such conduct. It also emphasized UDAP concerns could arise in connection with third-party servicers or counterparties acting on behalf of Fannie and Freddie. With this change, FHFA does not intend to impose separate or parallel UDAP obligations on the enterprises beyond those enforced by the FTC or Consumer Financial Protection Bureau.
In addition, under FHFA’s Directive No. 2025-145, the agency also ended the Special Purpose Credit Programs at the GSEs. In the directive, agency leadership said it determined that the current level of support for SPCPs is “inappropriate for regulated entities in conservatorship,” noting that enterprise SPCP programs provide “underwriting flexibilities and/or financial support such as down payment and closing cost assistance.” The directive clarifies that the “enterprises may comply with any contractual provisions regarding prior written notice to lenders.”
The protections were part of Fannie and Freddie’s Equitable Housing Finance Plans and were intended to improve housing stability for low- and moderate-income renters. FHFA’s leadership said the requirements exceed the agency’s role and that lease-related protections should be governed by state and local law.
