The Office of Federal Housing Enterprise Oversight, regulator of Fannie Mae and Freddie Mac, has plans to strengthen oversight of the two mortgage corporations with more in-depth examinations and coordination among federal agencies to enhance the nation’s housing finance system.

Also included in the federal regulator’s plan for fiscal years 2006-2011 released on Friday were a review of capital standards for the government-sponsored enterprises, or GSEs, and the establishment of a new regulatory regime through legislative change.

OFHEO, Fannie Mae and Freddie Mac have been the subject of multiple congressional hearings for more than two years in the wake of accounting scandals at both companies that caused each to restate several years of earnings results. Congress has not successfully passed legislation that would increase OFHEO’s authority or resources.

Fannie Mae and Freddie Mac “are at a critical point and OFHEO is focused on ensuring that they fix their major accounting, internal controls, systems, and management problems. Progress is being made but it will take several more years and a much stronger regulatory framework to ensure future success,” OFHEO Director James B. Lockhart said in a statement.

OFHEO’s plan adopts three strategic goals: 1) Enhance supervision to ensure the Enterprises operate in a safe and sound manner, are adequately capitalized and comply with legal requirements; 2) Provide support for statutory reforms to strengthen OFHEO’s regulatory powers; and 3) Continue to support the national policy of an efficient secondary mortgage market that promotes home ownership and affordable housing.

The second goal is a new one and reflects OFHEO’s assessment that it does not have the powers that it needs to fulfill its regulatory responsibilities. All three goals are designed to fulfill OFHEO’s mission: To promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac.

“I believe the nation’s housing finance system will be strengthened with enhanced supervision and a stronger regulatory regime, as proposed by Congress and supported by OFHEO,” said Lockhart.

Public comments on the plan were accepted through Sept. 13. OFHEO considered the comments in its final revision. OFHEO’s Strategic Plan for FY 2006-2011 and the public comments are available at www.ofheo.gov.

Show Comments Hide Comments
Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription
×