Industry News

Regulator details plan for Fannie Mae, Freddie Mac oversight

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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 ...