Market forces and regulatory issues outside the control of Fannie and Freddie may make it difficult for them to achieve the proposed affordable housing benchmarks.
Successive OIG reports have found chronic deficiencies in FHFA’s internal controls and in its supervision of the GSEs. The latest report is more of the same.
A new standardized structure for capital and risk-management disclosures will make it easier to compare Fannie and Freddie to one another and to other large financial institutions.
LIHTC and GSE programs both use the same flawed system for determining whether a project is “affordable,” revealed David Brickman, former CEO of Freddie Mac.
In her first long-form interview since taking over as FHFA acting director, Sandra Thompson insisted that expanding the GSEs’ books of business won’t make them riskier.
FHFA announced the suspension of the caps on the GSEs’ purchase of second-home and investor-property mortgages on Sept. 14. By Sept. 15, the price of these loans jumped more than a percentage point.