Common Contracts
1 similar Senior Preferred Stock Purchase Agreement contracts
Senior Preferred Stock Purchase Agreement: the FHFA and TreasurySenior Preferred Stock Purchase Agreement • March 17th, 2020
Two Government Sponsored Enterprises (GSE)s, the Federal National Mortgage Association (Fannie Mae) and The Federal Home Loan Mortgage Corporation (Freddie Mac), dominated the secondary mortgage market during the U.S. housing crisis, holding or assuring over $5 trillion combined. As the crisis escalated in the last two quarters of 2007, these two GSEs began to report billion-dollar losses. Given their size and importance in the secondary mortgage market, Fannie Mae and Freddie Mac’s potential insolvencies threatened to destabilize the entire financial system. On July 30, 2008 the government passed the Housing and Economic Recovery Act (HERA), which created a new regulator, the Federal Housing Finance Agency (FHFA), and provided Treasury with emergency powers to rescue the GSEs. On September 7, 2008, the FHFA and Treasury entered into an indefinite Senior Preferred Stock Purchase Agreement (SPSPA). The SPSPA marked one part of a four-part government intervention to stabilize the GSEs an
