Federal Housing Finance Agency (FHFA) Acting Director Edward J. DeMarco recently sent to Congress a strategic plan for the next phase of the conservatorships of Fannie Mae and Freddie Mac (the Enterprises).
The plan builds on the Acting Director’s February 2010 letter to Congress on the conservatorships and sets forth objectives and steps FHFA is taking or will take to meet FHFA’s obligations as conservator. Fannie Mae and Freddie Mac were placed into conservatorships Sept. 6, 2008 and have since received more than $180 billion in taxpayer support.
FHFA identifies three strategic goals for the next phase of the conservatorships:
• Build. Build a new infrastructure for the secondary mortgage market;
• Contract. Gradually contract the Enterprises’ dominant presence in the marketplace while simplifying and shrinking their operations; and
• Maintain. Maintain 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 wrote. “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 and a comprehensive review of the nation’s housing finance system,” said DeMarco.
To read the complete letter, click here . http://www.fhfa.gov/webfiles/23344/StrategicPlanConservatorshipsFINAL.pdf