Fannie Mae and Freddie Mac should each implement a board-approved risk-management framework that specifically includes risk-based oversight of single-family seller/servicers, according to an advisory bulletin issued this week by the Federal Housing Finance Agency. The new “supervisory expectation” covers numerous seller/servicer oversight activities that the government-sponsored enterprises have done for years, albeit pulling them all together under a comprehensive framework. It implements a recommendation made by the FHFA inspector general in July, which expressed concern that the regulator is not paying enough attention to the financial condition of certain nonbank servicers that make up a growing share of Fannie/Freddie business. “FHFA expects...