FHFA Outlines Next Steps for Fannie and Freddie
The Federal Housing Finance Agency on Feb. 21 sent Congress its strategic plan for the next phase of conservatorship of government-sponsored enterprises Fannie Mae and Freddie Mac, the FHFA announced in a news release.
The plan, which builds on Acting Director Edward J. DeMarco’s February 2010 letter to Congress on the conservatorship, identified three strategic goals, including:
Building a completely new infrastructure for the secondary mortgage market, where servicers and bond investors can access borrower information and track collateral performance;
Gradually contracting the GSEs’ dominant presence in the marketplace while simplifying and shrinking their operations; and
Maintaining foreclosure prevention activities and credit availability for new and refinanced mortgages.
“With the conservatorships operating for more than three years and no near-term resolution in sight, it is time to update and extend the goals and directions of the conservatorships,” DeMarco said in the release. “FHFA is contemplating next steps to build an infrastructure for the secondary mortgage market that is consistent with existing policy proposals and will support any outcome of the leading legislative proposals. FHFA looks forward to working with Congress and the Administration on a resolution of the conservatorships.”
The GSEs were placed into conservatorships Sept. 6, 2008, and have since received more than $180 billion in taxpayer support. The FHFA said the money is unlikely to be fully paid back.
Read the announcement and strategic plan.