Lately, Federal national mortgage association and you can Freddie Mac, that are congressionally chartered stockholder-had businesses, features experienced several accounting and financial difficulties. Together, these issues contributed of numerous during the Congress to summarize you to Fannie mae, Freddie Mac, together with FHLBs you would like a stronger regulator. P.L. 110 – 289 produces the brand new Government Construction Funds Department (FHFA) to be this new regulator on casing GSEs, replacing the office out-of Government Construction Business Oversight (OFHEO) therefore the Federal Construction Funds Panel (FHFB). The work out-of mode mission goals is actually transferred to FHFA away from the new Service out-of Casing and you can Metropolitan Development (HUD). 3

P.L. 110 – 289 provides FHFA large power to manage the latest property GSEs. FHFA is provided with the duty to review and agree brand new sort of mortgages. FHFA try provided the authority to take over and you may rearrange an insolvent Federal national mortgage association otherwise Freddie Mac computer and that expert was applied into the September seven if FHFA put Federal national mortgage association and you will Freddie Mac below conservatorship. 4 The newest FHFA has higher authority to create resource criteria having this new housing GSEs. (more…)