FHFA may have dealt with last year’s controversy over executive compensation at Fannie Mae, but it still has a long way to go to fix its in-house issues with executive compensation reviews.
The regulator proposed a more standard, nationwide definition of “colonia” to make it easier for the enterprises and lenders to identify communities where their activities are eligible for credit under DTS.
FHFA is expected to produce a long list of recommended actions to modernize the FHLBank system, but large-scale reform will probably require legislation.
By acing their 2021 stress tests, Fannie Mae and Freddie Mac may have demonstrated they’re no longer a threat to taxpayers, but they’re still years away from having enough capital.