On March 17, the FHFA amended its “Private Transfer Fee Covenants Regulation,” to reinstate “grandfather” exceptions. The rule restores timing and transitional applicability provisions that exempt mortgages on properties encumbered by private transfer fee covenants created before February 8, 2011, or created pursuant to pre-February 8, 2011, agreements in settlement of litigation or approved by a government agency — provisions that were removed in a 2024 amendment. The FHFA stated that the exceptions apply retroactively (“nunc pro tunc”) to the original effective date of the regulation, July 16, 2012. The agency said it reinstated the exceptions after stakeholders expressed concern that their removal created uncertainty over whether certain legacy agreements qualified for exceptions, potentially affecting property titles. The agency stated that restoring the provisions will ensure continuity and allow market participants to verify eligibility based on operative dates in the regulation. The FHFA invoked the “good cause” exception under the APA to forgo notice and comment, describing the amendment as technical and stating that “expeditious correction” was warranted for those who had relied on the prior exception.