Private Capital for Fannie and Freddie: FHFA Report
Federal Housing Finance Agency Acting Director Edward J. DeMarco on Tuesday released an updated 2013-2017 strategic plan that acknowledges congressional discussions to transition capital and risk away from the federal government.
Fannie Mae and Freddie Mac, both currently in conservatorship, are expected to continue to support housing finance, but also “contribute to an increase in the role of private sources of capital in housing finance, ultimately diminishing direct and indirect government support,” the strategic report said.
The four general goals in the 31-page plan include returning the enterprises to a safe and sound status; preserving and conserving enterprise assets; ensuring housing finance stability, liquidity and access; and preparing for the future of housing finance.
“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 said.
“Working with the Congress, the Administration and FHFA’s stakeholders, I am confident that FHFA will meet the challenge of building the foundation for a safer, more efficient, and effective system of housing finance,” he said.
The updated plan also incorporates key components of FHFA’s Strategic Plan for Enterprise Conservatorships released in February. A PDF file of the plan is available for viewing on the FHFA’s website.