FHFA is a regulatory agency responsible for ensuring that the GSEs, which help supply funds to lenders that finance loans for home mortgages, are financially sound.
In 1932, during the Great Depression, Congress passed, and President Herbert Hoover signed into law, the Federal Home Loan Bank Act (Bank Act), which created 12 regional federal home loan banks to improve the supply of funds to local lenders that finance loans for home mortgages. In response to the U.S. savings and loan crisis of the 1980s Congress passed the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA) and created the Federal Housing Finance Board, as a replacement for the Federal Home Loan Bank Board. FHFB was given the responsibility of overseeing the FHLBank System.
FHFA supervises FHLBanks to see that they operate in a financially safe manner and remain adequately capitalized and capable of raising funds in the capital markets, to be able to provide long-term, flexible financing to their more than 8,100 member financial entities around the country. These are commercial banks, savings institutions, credit unions, and insurance companies that meet eligibility criteria and form a cooperative partnership that helps finance the country's urban and rural housing and community development needs, supporting community-based financial institutions and facilitating their access to credit.
Since it was established in 2008, the FHFA has spent $25.2 million on 241 transactions, roughly 50 percent of which are for legal services, with the rest including such contracts as automated news and data, ADP software, and miscellaneous professional services.
FHFA, Freddie Mac Argue Over Disclosures
Bipartisan Bill Proposes End of Freddie Mac and Fannie Mae
Alicia R. Castaneda
Edward J. DeMarco has served since September 1, 2009, as acting director of the Federal Housing Finance Agency (FHFA), which regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.