The Federal Housing Finance Agency, the federal regulator andconservator of government-owned mortgage giants Fannie Mae and Freddie Mac, has delivered a strategic plan forthe two that envisions them moving smaller and less relevant to thesecondary mortgage market moving forward.

“With the conservatorships operating for more than three yearsand no near-term resolution in sight, it is time to update andextend the goals and directions of the conservatorships,” wroteFHFA acting directors Edward DeMarco in a Feb. 21 letteraccompanying the plan. “FHFA is contemplating next steps to buildan infrastructure for the secondary mortgage market that isconsistent with existing policy proposals and will support anyoutcome of the leading legislative proposals. FHFA looks forward toworking with Congress and the Administration on a resolution of theconservatorships and a comprehensive review of the nation's housingfinance system.”

The goals of the agency's plan includes building newinfrastructure for the secondary mortgage market of the futurealong with taking steps to move more of the mortgage business awayfrom the GSEs. The plan also envisions the agency continuingits efforts at foreclosure mitigation.

But the plan is also short on specifics, a fact that NAFCUpicked up on in a Feb. 21 letter to FHFA about the plan.

“The FHFA strategic plan raises more questions than it answersin the ongoing debate of GSE reform,” NAFCU wrote. “Whether agovernment guarantee will be part of the future of any reform planis a key issue for our members, and one FHFA has not answered.NAFCU strongly supports a viable secondary market to which creditunions have equitable access.”

“The impact of a single securitization platform, the role ofpricing, and the degree of private market control in the secondarymarket are all areas where the fine-print determines whether theoutcome will be positive or negative for our members,” theassociation observed. “We look forward to a continued debate onthese issues and appreciate that FHFA has acknowledged thenecessity to keep Fannie and Freddie viable until an appropriatetransition is in place.”