NAR Letter to Treasury and FHFA Regarding Changes to Capital Preferred Stock Purchase Agreements

On November 30, NAR sent a letter to Secretary Mnuchin and Director Calabria. The letter urges the Treasury and FHFA to forestall advancing the pre-finalized enterprise capital rule and making any changes to the preferred stock purchase agreements that could endanger market stability by ending the conservatorship. Treasury and FHFA must be prudent in exercising regulatory restraint in the best interests of the recovering economy until after the pandemic is under control. The Enterprises currently support nearly 75% of home purchases and are one of the few bright spots supporting the frail economy. The potential combination of economic uncertainty and a rushed process to end conservatorship could have significant negative consequences homeowners, homebuyers and the broader economy.