FHFA seeks feedback on proposed resolution amending Suspended Counterparty Program

The Federal Housing Finance Agency (FHFA) is seeking input regarding a proposed rule amending the Suspended Counterparty Program (SCP) regulation.

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“Amending the Suspended Counterparty Program will help strengthen FHFA’s ability to protect its regulated entities from business risks presented by individuals or institutions who engage in misconduct,” FHFA Director Sandra L. Thompson said. “The proposed rule will strengthen FHFA’s ability to ensure the regulated entities remain safe and sound so they continue to serve as reliable sources of liquidity.”

Per the FHFA, the proposed rule authorizes suspension of business between the regulated entities and counterparties found to have committed misconduct in the context of civil enforcement actions or who are found to have committed criminal or civil misconduct in connection with the management or ownership of real property.

Additionally, according to the FHFA, proposed guidance would authorize the agency to immediately and without first issuing a proposed suspension order, suspend business between the regulated entities and counterparties where the misconduct has resulted in debarment, suspension, or limited denial of participation imposed by a federal agency.

The FHFA is soliciting comments on the proposed rule within 60 days of its publication in the Federal Register, with proposed rule feedback to be submitted electronically or by mail to the Federal Housing Finance Agency.