first_img The Week Ahead: Nearing the Forbearance Exit 2 days ago Subscribe Previous: Why Are Americans Putting Off Selling Their Homes? Next: Should CFPB Reorganize ‘Just Weeks Before an Election’? The Federal Housing Finance Agency (FHFA) has released an updated strategic plan that envisioned a path for ending the conservatorships of Fannie Mae and Freddie Mac that have been in place since September 2008.According to a statement issued by the agency, “FHFA Strategic Plan: Fiscal Years 2021-2024” formalizes the direction of the FHFA and its regulated entities with an updated mission that includes three new strategic goals:Ensuring safe and sound regulated entities through world-class supervision;Fostering competitive, liquid, efficient, and resilient (CLEAR) national housing finance markets; andPositioning the agency as a model of operational excellence by strengthening its workforce and infrastructure.“FHFA must take steps to prepare for its post-conservatorship role as a world-class regulator,” said FHFA Director Mark Calabria. “This new Strategic Plan outlines the critical milestones that will guide FHFA’s efforts to ensure that its supervision and regulation of the Enterprises is strong and well-executed once outside the framework of conservatorship.”Although the plan did not offer a specific timeline for achieving a post-conservatorship environment, Calabria added that the FHFA has already begun to take actions that align with these goals, including the creation of the Office of Equal Opportunity and Fairness and the Division of Research and Statistics, which both occurred last January.The strategic plan acknowledged there could be obstacles to prevent it from being implemented, including the possibility of the government-sponsored enterprises becoming unable to provide liquidity to the mortgage market during a period of economic fraying.“Financial stress that adversely affects the safety and soundness of the regulated entities can come at any time,” the strategic plan warned. “A severe economic downturn could trigger a decline in nationwide or regional house prices, causing an increase in mortgage defaults. Disruptions in funding markets could limit access to and increase the cost of short-term borrowing. Defaults by one or more significant counterparties could expose the regulated entities to loss.”The strategic plan also predicted difficulties from “any new housing finance legislation enacted into law [that] could potentially affect FHFA’s ability to implement this StrategicPlan.” The plan recommended that Congress “give FHFA the same flexibility as the federal banking regulators by amending or removing the statutory capital definitions” while allowing it to continue partnering with other federal agencies “to ensure a fair playing field and mitigate opportunities for regulatory arbitrage.”“The finalized strategic plan will help cement the agency as a world-class financial regulator by ensuring that we fulfill our statutory mission and continue working to end the conservatorships of the enterprises responsibly,” Calabria said. October 27, 2020 1,586 Views Demand Propels Home Prices Upward 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Phil Hall is a former United Nations-based reporter for Fairchild Broadcast News, the author of nine books, the host of the award-winning SoundCloud podcast “The Online Movie Show,” co-host of the award-winning WAPJ-FM talk show “Nutmeg Chatter” and a writer with credits in The New York Times, New York Daily News, Hartford Courant, Wired, The Hill’s Congress Blog and Profit Confidential. His real estate finance writing has been published in the ABA Banking Journal, Secondary Marketing Executive, Servicing Management, MortgageOrb, Progress in Lending, National Mortgage Professional, Mortgage Professional America, Canadian Mortgage Professional, Mortgage Professional News, Mortgage Broker News and HousingWire. Sign up for DS News Daily  Print This Post Related Articles in Daily Dose, Featured, Government, Newscenter_img FHFA Strategy Focuses on Post-Conservatorship Years Fannie and Freddie FHFA Strategic Fiscal Plan 2020-10-27 Christina Hughes Babb The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago Tagged with: Fannie and Freddie FHFA Strategic Fiscal Plan About Author: Phil Hall Home / Daily Dose / FHFA Strategy Focuses on Post-Conservatorship Years Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days agolast_img