FHFA Finalizes Fannie-Freddie Strategic Plan

The Federal Housing Finance Agency today issued its final 2018-2022 strategic plan for its oversight of Fannie Mae, Freddie Mac and the Federal Home Loan Banks that stresses ensuring safety and soundness at the regulated entities; promoting liquidity, stability and access in the housing market; and managing the Fannie and Freddie conservatorships.

In managing the ongoing conservatorships of Fannie and Freddie, the FHFA intends to reduce taxpayer risk by conducting more risk-sharing transactions involving private capital, continue developing the GSEs’ Common Securitization Platform and implement the Single Security. The agency warned that interest rate volatility, constricted home construction and overall economic conditions could pose risks to the plan, and it urged Congress to chart a course for housing finance that will address the ongoing risks from the Fannie and Freddie conservatorships.