FHFA Revives 'Grandfather' Exceptions After 2024 Oopsie Erases Them
Published Date: 3/17/2026
Rule
Summary
The Federal Housing Finance Agency just brought back special 'grandfather' rules that let Fannie Mae, Freddie Mac, and Federal Home Loan Banks deal with certain private transfer fees on homes—rules that were accidentally removed in 2024. These exceptions apply retroactively all the way back to July 16, 2012, so no one misses out. If you’re involved in mortgages or home sales, this means smoother transactions and clearer rules starting March 17, 2026.
Analyzed Economic Effects
2 provisions identified: 2 benefits, 0 costs, 0 mixed.
Grandfather Exceptions Restored for PTFCs
FHFA reinstated the PTFC "grandfather" exceptions effective March 17, 2026 and made them applicable retroactively to July 16, 2012. The rule says the part applies only to mortgages on properties with private transfer fee covenants (PTFCs) created on or after February 8, 2011, except it does not apply to PTFCs created before February 8, 2011 or to PTFCs created on/after February 8, 2011 under agreements entered into before February 8, 2011 that were settlement agreements or approved by a government agency. The provision also covers securities backed by those mortgages and securities issued after February 8, 2011 backed by revenue from private transfer fees, regardless of when the covenants were created.
Shared-Equity Loans Exempted if Before July 1, 2023
The rule says part 1228 does not apply to shared equity loans or related securities with promissory note dates before July 1, 2023, even if those loans did not meet the Duty to Serve shared equity loan program criteria in 12 CFR 1282.34(d)(4)(i)(A) and (d)(4)(ii). This allows the Enterprises and Banks to retain such loans and related securities without regard to those specific program criteria.
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Key Dates
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