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OIG says FHFA Practices Need Improvement, Lots of It.
Friday, April 13, 2018
If they had a report card, the Federal Housing Finance
Agency (FHFA) would have been afraid to take it home to mom and dad. Laura S.
Wertheimer, FHFA's Inspector General, reported to the House Committee on
Financial Services on Thursday about the oversight FHFA provides to the
government sponsored enterprises (GSEs) it regulates. It barely got a passing grade. FHFA has a dual role as both regulator and conservator
of the GSEs, Fannie Mae and Freddie Mac, and is also regulator of the Federal
Home Loan Banks (FHLBanks). Wertheimer
noted that the GSEs, even though they are highly leveraged, have a diminished
capital buffer and are in conservatorship, have a combined market share of 60
percent of newly issued mortgage-backed securities, and collectively reported
$5.4 trillion in assets at the end of last year.
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