The Federal Housing Finance Agency today released a progress report on its goals for Fannie Mae and Freddie Mac while the GSEs are in federal conservatorship. The report covers FHFA’s goals for the GSEs to maintain access to credit and help prevent foreclosures, reduce credit risk and build a common securitization platform that issues a single security.
To improve credit access, the agencies have revisited existing credit policies and guidance, provided additional outreach to underserved borrowers, and extended the Home Affordable Refinance Programs through September 2017, among other initiatives. Fannie and Freddie also maintained their risk transfer programs to reduce overall taxpayer liability, and both met their goals for transferring credit risk for single-family mortgage loans.
Additionally, the GSEs made progress toward building the common securitization platform, with successful completion of Release 1 in December, which allowed Freddie Mac to use the platform to issue its current securities. Release 2 is currently scheduled for the second quarter of 2019, and will allow both GSEs to issue their own securities, as well as Single Securities.