FHFA releases GSEs' strategic plan, scorecard
The Federal Housing Finance Agency (FHFA) Monday announced a strategic plan that provides a framework for how the agency will prepare the government-sponsored enterprises (GSEs) – Fannie Mae and Freddie Mac – to be released from conservatorship. The agency also released a scorecard that will be used to hold the GSEs accountable for implementing the strategic plan.
Last month, the White House released plans from Treasury and HUD that would release the GSEs from federal control, charter new guarantors to compete with the GSEs, strengthen single-family borrower programs, and more.
"Our nation's mortgage finance system is in urgent need of reform," said FHFA Director Mark Calabria in a statement. "The vision for reform articulated in the Strategic Plan and advanced in the Scorecard will serve borrowers and renters by preserving mortgage credit availability, protect taxpayers by ensuring Fannie Mae and Freddie Mac can withstand an economic downturn, and support a strong and resilient secondary mortgage market."
The strategic plan is broken into three goals designed to ensure the GSEs:
- focus on their core mission responsibilities to foster competitive, liquid, efficient, and resilient national housing finance markets that support sustainable homeownership and affordable rental housing;
- operate in a safe and sound manner appropriate for entities in conservatorship; and
- prepare for their eventual exits from the conservatorships.
Additionally, the scorecard includes a detailed summary of how the agency plans to address issues related to the duty to serve requirements, the Common Securitization Platform, credit risk transfer, implementation of the alternative credit score finale rule, and the LIBOR transition.
The FHFA also indicated that it plans to provide any requested assistance toward the creation of a new qualified mortgage (QM) standard. Earlier this month, NAFCU urged the CFPB to adopt viable alternatives that allow credit unions "the same protections and benefits, including access to the secondary market, and the ability to provide credit for their members" if the bureau decides not to extend the patch.
As a leader in housing finance reform efforts, NAFCU will continue to advocate for credit unions' unfettered access to the secondary mortgage market and urge the FHFA and Congress to work together on a comprehensive solution.
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