House Hearing on Oversight of FHFA

On May 23, House hearing on FHFA oversight and home protections.

  • House Hill remarked at FHFA oversight protecting homeowners and taxpayers hearing.
  • Examined recent FHFA actions that undermine housing affordability and policy failures.
  • Held hearing on loan level price adjustments and its impact on mortgages, #173296.
  • Witness was Sandra Thompson, FHFA director; follows May hearing notices, #171773.
  • Hill Remarks
  • Fannie and Freddie have been under government conservatorship for almost 15 years.
  • As long as they are under conservatorship, FHFA's primary focus should be raising Fannie, Freddie (enterprises) capital and maintaining their narrow charter and mission.
  • In 2008, Fed started buying mortgage-backed securities as a temporary response to the financial crisis but now owns nearly a quarter of all 1-to-4 residential mortgages.
  • Housing is affordability worse, with high rates, but enterprises have become bigger.
  • Thompson has been active in initiatives to revamp and expand roles enterprises play.
  • Including politically-driven equitable housing finance plan lending mandates, #140306.
  • Noted critical need for Congress to provide oversight and accountability to FHFA work.
  • FHFA allowed safety and soundess to take a back seat to advance the housing agenda.
  • Such as unworkable debt-to-income based fee for single-family borrowers, #161172.
  • Also, request for input on the process used to set GSE pricing adjustments, #172788.
  • Oversight of FHFA
  • It is the responsibility of FHFA to oversee housing Government sponsored enterprises (GSEs), Fannie Mae and Freddie Mac, as well as the Federal home loan banks (FHLBs).
  • Director must ensure that each regulated entity operates in a safe and sound manner.
  • At the end of 2022, the GSEs combined owned or guaranteed approximately $7.4trn in single-family and multifamily mortgages; amount is over half of the $13trn US market.
  • Regulatory decisions made by FHFA, coupled with operational decisions made as GSEs conservator, gives it tremendous influence over the availability of mortgage credit.

Regulators House
Entity Types Bank; CU; MG Orig; Thrift
Reference Mt, Memo, PR, Vid 5/23/2023
Functions Compliance; Financial; Legal; Operations; Risk; Treasury
Countries United States of America
Category Central Government
Products Banking; Loan; Mortgage
Regions Am
Rule Type Guidance
Rule Date 5/23/2023
Effective Date 5/23/2023
Rule Id 173577
Linked to Rule :173296
Reg. Last Update 5/23/2023
Report Section US Banking

Last substantive update on 05/25/2023