FHFA’s 2019 Plan for Fannie and Freddie

On Wednesday, The Federal Housing Finance Agency (FHFA) released the 2019 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. The FHFA notes that the 2019 Scorecard furthers the goals outlined in the Agency’s 2014 Strategic Plan for the Conservatorships of Fannie Mae and Freddie Mac.

Much like the previous year’s Scorecard, the GSEs,  as well as Common Securitization Solutions will be assessed for all Scorecard items based on the following key criteria: The extent to which each Enterprise conducts initiatives in a safe and sound manner consistent with FHFA's expectations for all activities; the extent to which the outcomes of each Enterprise's activities support a competitive and resilient secondary mortgage market to support homeowners and renters; the extent to which each GSE meets FHFA's expectations under the Conservatorship Capital Framework (CCF), including FHFA's expectations on meeting appropriate return on conservatorship capital targets; the extent to which each Enterprise conducts initiatives with consideration for diversity and inclusion consistent with FHFA's expectations for all activities; cooperation and collaboration with FHFA, each other, the industry, and other stakeholders; and the quality, thoroughness, creativity, effectiveness, and timeliness of their work products.

Goals for 2019 include reducing taxpayer risk through increasing the role of private capital in the mortgage market; and building a new single-family infrastructure for use by the GSEs and adaptable for use by other participants in the secondary market in the future.

Another key goal FHFA expects for 2019 is for the GSEs to maintain, in a safe and sound manner, credit availability and foreclosure prevention activities for new and refinanced mortgages to foster liquid, efficient, competitive and resilient national housing finance markets. In the Scorecard, FHFA notes that it expects Fannie Mae and Freddie Mac to operate their single-family and multifamily business activities safely and effectively, in a manner that supports safety and soundness, market liquidity, and access to credit.

Find the complete Scorecard here.