Yesterday the Federal Housing Finance Agency (FHFA) in its capacity as conservator of Fannie Mae and Freddie Mac filed an Appearance and Conditional Objection regarding the proposed settlement between Bank of America and a group of 22 investors being currently considered by a New York court.
According to the FHFA, the pleading was filed to get any added relevant data regarding the matter. It said that it has no reason to raise a substantive objection to the proposed settlement at this time.
As a matter of fact, FHFA considers it positive that the proposed settlement has subservicing requirements, specific terms for the servicing of troubled mortgages and the curing of certain document deficiencies, the conservator of the GSEs said.
Additionally, the government agency said it was encouraged by the considerable number of market participants supporting the proposed settlement.
As a result of the agency's duty to preserve and conserve GSE assets, the conservator thinks "it prudent not only to receive additional information as it continues its due diligence of the proposed settlement, but also to reserve its capability to voice a substantive objection in the unlikely event that necessity should arise."
For the full FHFA statement, please click here.