Fannie Mae, Freddie Mac and the Federal Home Loan Banks should devise contingency plans to address the potential meltdown of their various business partners, according to the Federal Housing Finance Agency. The FHFA last week issued an advisory bulletin directing the government-sponsored enterprises to each come up with plans for managing their counterparty risk exposures. “The analysis to identify a high-risk or high-volume counterparty should include an assessment of whether the deterioration in the condition of the counterparty or an elimination or reduction in exposure could result in a material loss or significant disruption to operations,” explained the FHFA’s bulletin. The guidelines describe...