Federal Housing Finance Agency
The Federal Housing Finance Agency (FHFA) is an independent federal agency created by the Housing and Economic Recovery Act of 2008. It is responsible for regulating and supervising the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The FHFA also oversees the Federal Home Loan Banks, which provide funding to local lenders for mortgages and other housing-related activities. The FHFA is responsible for ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner, and that they comply with all applicable laws and regulations.
History of the Federal Housing Finance Agency
The FHFA was created in 2008 in response to the financial crisis of 2007-2008. The agency was created to provide oversight of Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs) that had become too large and too important to the housing market to be allowed to fail. The FHFA was given the authority to regulate and supervise the GSEs, as well as the Federal Home Loan Banks, which provide funding to local lenders for mortgages and other housing-related activities.
The FHFA is responsible for ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner, and that they comply with all applicable laws and regulations. The agency also has the authority to set standards for the GSEs, including capital requirements, risk management practices, and other operational requirements. The FHFA also has the authority to take enforcement actions against the GSEs if they fail to comply with the standards set by the agency.
Comparison Table
| FHFA | Fannie Mae | Freddie Mac |
|---|---|---|
| Regulates and supervises | Government-sponsored enterprise | Government-sponsored enterprise |
| Sets standards for GSEs | Provides funding for mortgages | Provides funding for mortgages |
| Enforces standards | Operates in a safe and sound manner | Operates in a safe and sound manner |
Summary
The Federal Housing Finance Agency (FHFA) is an independent federal agency created by the Housing and Economic Recovery Act of 2008. It is responsible for regulating and supervising the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). The FHFA also oversees the Federal Home Loan Banks, which provide funding to local lenders for mortgages and other housing-related activities. The FHFA is responsible for ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner, and that they comply with all applicable laws and regulations. For more information about the FHFA, visit their website at https://www.fhfa.gov/.
See Also
- Housing and Economic Recovery Act of 2008
- Federal National Mortgage Association (Fannie Mae)
- Federal Home Loan Mortgage Corporation (Freddie Mac)
- Federal Home Loan Banks
- Mortgage-Backed Securities
- Government-Sponsored Enterprises (GSEs)
- Capital Requirements
- Risk Management Practices
- Operational Requirements
- Enforcement Actions
