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FHFA OIG report: Further remediation needed in order to end conservatorship
According to a report by the Federal Housing Finance Agency's (FHFA) inspector general, the agency must elevate its ability to regulate government-sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, before it can release them from conservatorship.
FHFA Director Mark Calabria released a strategic plan last October that provides a framework for how the agency will prepare the GSEs to be released after a decade of government supervision and conservatorship. The inspector general’s report notes that, while Calabria has begun the process, work is still needed to strengthen the FHFA’s existing supervisory efforts over the GSEs.
In addition to the strategic plan, the FHFA announced earlier this year that the agency hired a financial advisor – Houlihan Lokey Capital, Inc. – "to assist in the development and implementation of a roadmap to responsibly end the conservatorships of Fannie Mae and Freddie Mac.”
On remediation, the report summarizes areas within the FHFA where work is most needed in order to successfully release the GSEs, specifying the following program elements:
- Examination Guidance and Execution;
- Adequately Sized Examiner Workforce with Necessary Qualifications and Training;
- Communication of Supervisory Findings; and
- Quality Control.
NAFCU will continue to engage with the FHFA, the Treasury, Congress, and other stakeholders to ensure credit unions' concerns are addressed in any final housing finance reform efforts.