A few of the Government Financial Banking companies (FHLBs), which can be congressionally chartered associate-had people, have also had economic dilemmas
In recent years, Federal national mortgage association and you will Freddie Mac computer, that are congressionally chartered shareholder-owned enterprises, has faced several accounting and you will financial trouble. Collectively, these issues led of numerous when you look at the Congress to close out one to Fannie mae, Freddie Mac computer, in addition to FHLBs you would like a healthier regulator. P.L. 110 – 289 produces the brand new Federal Homes Funds Institution (FHFA) become brand new regulator with the construction GSEs, replacing any office regarding Government Homes Agency Oversight (OFHEO) additionally the Government Property Financing Panel (FHFB). Work out of form mission requires is transferred to FHFA off the latest Agencies regarding Property and you will Metropolitan Development (HUD). 3
P.L. 110 – 289 gives FHFA wider power to control the brand new houses GSEs. FHFA is given the responsibility to review and also to agree the fresh new kind of mortgage loans. FHFA is actually granted the authority to dominate and you will reorganize an insolvent Federal national mortgage association or Freddie Mac which power was utilized on September 7 if the FHFA placed Fannie mae and you will Freddie Mac computer less than conservatorship. Read More