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The ""Federal Housing Finance Agency"":http://www.fhfa.gov/ released a revised Strategic Plan for the years 2013-2017 Tuesday. The plan is a modified version of the plan FHFA acting director Edward DeMarco presented to Congress in February.
[IMAGE]""The initiatives and strategies set forward in this plan will serve to improve current mortgage processes, inspire greater confidence among prospective market participants, and set the stage for recovery and an improved future system of housing finance,"" DeMarco stated with Tuesday's release.
The plan details four major goals for the FHFA over the next few years. The first goal is to ensure ""safe and sound housing government-sponsored enterprises.""
Second is to create ""stability, liquidity, and access in housing finance.""
The third is to ""preserve and conserve"" GSE assets, while the fourth is to ""prepare for the future of housing finance in the United States.""
[COLUMN_BREAK]The first goal will require annual on-site examinations of each GSE, initiate new policies and supervisory guidance, and evaluate compensation and incentives at both GSEs.
The goal of creating liquidity and stability will involve potential risk-sharing options, promoting home retention programs, and enhance REO disposition programs for ""Fannie Mae"":http://www.fanniemae.com/portal/index.html and ""Freddie Mac"":http://www.freddiemac.com/.
The third goal-that of preserving assets-involves several steps to implement refinancings, modifications, deeds in lieu, and short sales. Another aspect of goal three is establishing underwriting guidelines that would help prevent future losses.
The FHFA will also continue to evaluate guarantee fees and make alterations to align them with risk.
The last goal set forth in the Strategic Plan is to set a path for the future of housing finance. ""There are significant public policy questions and choices ahead on how to achieve an appropriate balance between the role of the private sector and the role of the U.S. Government as housing finance conditions change,"" according to the Strategic Plan.
FHFA will work toward reducing the role Fannie Mae and Freddie Mac play in the housing market and promoting private sector participation.
As part of paving the way toward a stable housing finance system in the future, FHFA will ""create robust and standardized pooling and servicing agreements,"" ""develop a new system for document custody and electronic registration of mortgages, notes, titles, and liens,"" and ""complete the implementation of the Uniform Mortgage Data Program.""
