The Federal Housing Finance Agency Office of the Inspector General said the FHFA needs to focus on improving its oversight of the GSEs and Federal Home Loan Banks in several key areas. In fact, the FHFA faces four “serious” management and performance challenges that carried over from prior years, according to a recently published OIG memo to FHFA Director Mel Watt. The OIG is troubled by the agency’s supervision of the GSEs and said it needs to improve oversight of matters delegated to Fannie Mae and Freddie Mac, as well as make its internal review process for non-delegated matters stronger.