Federal Housing Finance Agency (FHFA) Acting Director Edward DeMarco released the 2013 Conservatorship Scorecard for Fannie Mae and Freddie Mac. The Scorecard details specific priorities for Fannie Mae and Freddie Mac in 2013 that builds upon the three strategic goals announced in FHFA’s strategic plan for enterprise conservatorships released in 2012.
- Build a new securitization infrastructure, including a common securitization platform;
- Contract Fannie Mae and Freddie Mac’s dominant presence in the marketplace while simplifying and shrinking certain operations; and
- Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages.
“A great deal of progress was made in 2012 and we are ready to move to the next phase,” DeMarco said. “The steps outlined in the 2013 Scorecard lay a strong foundation for the secondary mortgage market of the future.”
DeMarco explained that Fannie and Freddie will not return to their previous corporate forms, instead the plan is to wind them down. He said their market presence will be gradually reduced over time, and a new entity will be established.
“We are announcing as part of the 2013 Scorecard that a new business entity will be established between Fannie Mae and Freddie Mac,” DeMarco said. “We believe that setting up a new structure that is separate from the two companies is important for building a new secondary mortgage market infrastructure. Our objective, as we stated last year, is for the platform to be able to function like a market utility, as opposed to rebuilding the proprietary infrastructures of Fannie Mae and Freddie Mac. To make this clear, I expect that the new venture will be headed by a CEO and Chairman of the Board that are independent from Fannie Mae and Freddie Mac. It will also be physically located separate from Fannie Mae and Freddie Mac. Importantly, we plan on instituting a formal structure to allow for input from industry participants.”
Click here to view the scorecard
Click here to view DeMarco’s remarks