When the agency ensures that Fannie Mae and Freddie Mac have access to capital, these entities can purchase more loans from lenders. Prior to this, its predecessors, the Office of Federal Housing Enterprise Oversight (OFHEO) and the Federal Housing Finance Board (FHFB), managed the enterprises with limited coordination.
What Does FHFA Do: Core Functions and Responsibilities
By regulating entities like Fannie Mae and Freddie Mac, FHFA aims to make homeownership more accessible while protecting taxpayers from excessive risk. Consequently, FHFA’s policies have a trickle-down effect on the monthly mortgage payments of millions of Americans.
Origins and Legislative Foundation FHFA was created through the Housing and Economic Recovery Act of 2008 (HERA) in response to the financial crisis. Conservatorship of GSEs One of the most significant actions FHFA has taken was the placement of Fannie Mae and Freddie Mac into conservatorship in September 2008.
What Does FHFA Do Understanding the Federal Housing Finance Agency's Role
The agency also monitors compliance with consumer protection laws to ensure that borrowers are treated fairly. Core Functions and Responsibilities FHFA operates with a multi-faceted mandate that extends beyond simple regulation.
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