CHLA Commends Freddie Mac for Expanding Repurchase Alternative Pilot
(Washington, D.C.) – The Community Home Lenders of America (CHLA) commends Freddie Mac and FHFA Director Sandra Thompson for expanding the performing loan repurchase alternative pilot program to lenders nationwide. Allowing lenders to opt-in for a fee-based structure rather than requiring a repurchase on a performing loan will ensure higher-quality underwriting and improve consumer protections.
“CHLA greatly appreciates the expansion of this repurchase alternative pilot for performing loans,” said Scott Olson, executive director. “We continue to support this program and its mission to provide balance in a challenging housing environment for lenders and borrowers by improving loan quality and ensuring borrowers, particularly underserved, are able to stay in their homes.”
In May of 2023, CHLA sent a letter to FHFA urging the GSEs to adopt a policy that offers a reasonable indemnification in lieu of a repurchase demand for performing loans. This past November, we commended Freddie Mac and FHFA for establishing a fee-based repurchase pilot program.