Calabria Urges Congress to Expand FHFA’s Authority

In a preface to the Federal Housing Finance Agency’s annual report to Congress today, Director Mark Calabria once again urged lawmakers to strengthen the agency’s authority as they work to unwind the conservatorships of Fannie Mae and Freddie Mac. As Congress pursues a potential legislative solution he emphasized that any reforms should “reduce the risk to the taxpayer, promote private sector competition, and support sustainable homeownership.”

Calabria specifically requested that FHFA be granted the authority to charter new government-sponsored enterprises to compete with Fannie and Freddie, noting that “increased competition would reduce market reliance on either enterprise and enhance market stability, as well as benefit home buyers.” He also called for the authority to examine third parties that do business with the GSEs, and for changes to the statutory capital definitions that apply to the enterprises.