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FHFA Scorecard Prepares GSEs for ‘Ultimate’ Exits From Conservatorship

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FannieFreddieThe Federal Housing Finance Agency (FHFA) today released the 2021 Scorecard for Fannie Mae, Freddie Mac, and Common Securitization Solutions. According to the agency, "the 2021 Scorecard aligns the 2019 Strategic Plan with the GSEs’ tactical priorities and operations," serving as an "essential tool" to hold them accountable. It also prepares the GSEs for an eventual exit from government conservatorship.

"The 2021 Scorecard will ensure that Fannie Mae, Freddie Mac, and Common Securitization Solutions properly serve borrowers and renters, protect taxpayers, and support the secondary mortgage market," said Director Mark Calabria.

The three objectives of the 2021 Scorecard are to ensure that the Enterprises continue to:

According to a press release from FHA, resolution planning requirements are new to the Scorecard in 2021.

The scorecard requires both Fannie and Freddie to begin developing a plan to resolve its business in the event the enterprises were to be placed in receivership, also known as a "living will," which the agency has called a necessary step [1] toward Fannie Mae and Freddie Mac's fiscally responsible exit from government oversight.

Notes the FHFA in a press release, "these plans must demonstrate how the enterprises would preserve their core businesses with neither disruption to housing and finance markets nor utilizing extraordinary support from the Treasury Department or taxpayers."

The full 2020 scorecard and 2019's strategic plan are accessible at FHFA.gov [2].