FHFA

The Federal Housing Finance Agency (FHFA) is an independent United States federal agency created by the Housing and Economic Recovery Act of 2008 to oversee the government-sponsored enterprises involved in housing finance. Its core mission is to ensure a safe, sound, and liquid mortgage market by supervising the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac), and the Federal Home Loan Banks System. The agency also plays a role in implementing housing finance policy and regulatory oversight as directed by Congress and the Administration.

FHFA was established by merging the former Office of Federal Housing Enterprise Oversight (OFHEO) and the Federal Housing Finance Board (FHFB). In response to the 2008 financial crisis, FHFA placed Fannie Mae and Freddie Mac into conservatorship on September 6, 2008, directing their operations and capitalization under the conservatorship framework. Since then, FHFA has supervised the enterprises and the Federal Home Loan Banks to maintain financial stability and prudent risk management.

Governance is centralized in a single Director, appointed by the President and confirmed by the Senate, and supported by a professional staff across divisions such as supervision, risk, and enforcement. The agency uses its regulatory authority to set safety-and-soundness standards, conduct examinations, issue regulations, and establish capital requirements for the GSEs and the Federal Home Loan Banks. It engages in policy development, regulatory coordination with other federal and state authorities, and reporting to Congress.

Today, FHFA continues to oversee the GSEs and the Federal Home Loan Banks, with a mandate to uphold housing finance stability, oversee capital adequacy, and monitor risks affecting the mortgage market.