August 24, 2014

FHFA seeks input on strategic plan for Fannie, Freddie

Aug. 18, 2014 – FHFA is requesting comments on its strategic plan for fiscal years 2015-2019, which addresses, among other things, the agency's work on a single security structure for Fannie Mae and Freddie Mac.

Specifically, the agency is requesting comments from members of Congress, the public and any interested stakeholders on the plan. It presents three main goals: ensure the safety and soundness of their regulated entities; ensure liquidity, stability and access in housing finance; and manage the ongoing conservatorship of the government-sponsored enterprises.

FHFA's work on a single-security structure is addressed in connection with the entities' ongoing conservatorships. "FHFA is in the early stages of a multi-year process to develop a Single Security for securitizations of Enterprise purchased loans," the plan states. "When this process is completed in the future, a Single Security should improve the overall liquidity of the Enterprises' securities."

The plan says parameters will be set for security characteristics and disclosures under the new structure. Stakeholders' feedback will be sought throughout the process, it says.

Comments are due Sept. 15 on the overall strategic plan, and NAFCU plans to submit input. Meanwhile NAFCU continues to advocate for ensuring government-guaranteed access to the secondary mortgage market for credit unions and pricing based on loan quality rather than volume.