OIG says FHFA Practices Need Improvement, Lots of It.

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Posted To: MND NewsWire

If they had a report card, the Federal Housing Finance Agency (FHFA) would have been afraid to take it home to mom and dad. Laura S. Wertheimer, FHFA’s Inspector General, reported to the House Committee on Financial Services on Thursday about the oversight FHFA provides to the government sponsored enterprises (GSEs) it regulates. It barely got a passing grade. FHFA has a dual role as both regulator and conservator of the GSEs, Fannie Mae and Freddie Mac, and is also regulator of the Federal Home Loan Banks (FHLBanks). Wertheimer noted that the GSEs, even though they are highly leveraged, have a diminished capital buffer and are in conservatorship, have a combined market share of 60 percent of newly issued mortgage-backed securities, and collectively reported $5.4 trillion in assets at the end…(read more)

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