FHFA Sets 2021 Performance Goals for Fannie, Freddie

The Federal Housing Finance Agency today issued the metrics on which it will assess the 2021 performance of Fannie Mae, Freddie Mac, and Common Securitization Solutions, their jointly owned securitization platform.

Among other goals, the GSEs will be expected to foster competitive, liquid, efficient and resilient national housing finance markets that support sustainable homeownership and affordable rental housing; operate in a safe and sound manner; and prepare for their eventual exits from conservatorship.

Also included in this year’s scorecard is a requirement for Fannie and Freddie to develop resolution plans that will demonstrate how to facilitate their rapid and orderly resolution in the event that the FHFA is appointed receiver. The GSEs will also be required to implement capital management and capital planning capabilities to transition to the new GSE capital framework.