FHFA Proposes Rule on Conservatorship and Receivership Operations for Fannie Mae, Freddie Mac and Federal Home Loan Banks

Washington, DC – July 7, 2010 – (RealEstateRama) — The Federal Housing Finance Agency (FHFA) has sent to the Federal Register a proposed rule to codify the terms of conservatorship and receivership operations for Fannie Mae, Freddie Mac and the Federal Home Loan Banks, pursuant to the Housing and Economic Recovery Act of 2008 (HERA). The proposed rule parallels many of the provisions in the Federal Deposit Insurance Corporation (FDIC) rules for conservatorships and receiverships. Among the key issues addressed in the proposed rule are: the status and priority of claims, the relationships among various classes of creditors and equity-holders and the priorities for contract parties and other claimants under conservatorships or receiverships