This annual report describes FHFA's accomplishments, as well as challenges, the agency faced in meeting the strategic goals and objectives during the past fiscal year.
Read about the agency’s 2018 examinations of Fannie Mac, Freddie Mac and the Home Loan Bank System.
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Implement critical reforms that will produce a stronger and more resilient housing finance system.
FOSTER competitive, liquid, efficient, and resilient (CLEAR) national housing finance markets that support sustainable homeownership and affordable rental housing; OPERATE in a safe and sound manner appropriate for entities in conservatorship; and PREPARE for eventual exits from the conservatorships.
2019 Conservatorships Strategic Plan
FHFA experts provide reliable data, including all states, about activity in the U.S. mortgage market through its House Price Index, Refinance Report, Foreclosure Prevention Report, and Performance Report.
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Federally regulated Fannie Mae and Freddie Mac have come together to get the word out about mortgage relief options for those affected by natural disasters, including hurricanes during the 2017 hurricane season. Our goal is to make sure you have time to focus on your safety.
Learn about options available for homeowners affected by a hurricane during the 2017 hurricane season or by other natural disasters.
FHFA, jointly with the Enterprises, announced the Servicing Alignment Initiative (SAI) in April 2011 with an effective date of October 1, 2011. The objective of SAI was to develop consistent servicing policies that would help servicers to do a better job of resolving delinquencies in a consistent, efficient, and expeditious manner with the goal of keeping struggling borrowers in their homes whenever possible while minimizing losses to the Enterprises and taxpayers. Under SAI, the Enterprises developed a broad suite of aligned loss mitigation programs that streamline the delivery of loss mitigation solutions to borrowers. The success of these efforts is tracked in FHFA's quarterly
Foreclosure Prevention Report which documents the Enterprises’ performance in foreclosure prevention actions for borrowers. The loss mitigation solutions outlined in the reports are currently being re-evaluated and redesigned to address a more stable economic environment.
On July 25, 2016 FHFA, the U.S. Department of the Treasury, and the U.S. Department of Housing and Urban Development (HUD) issued a joint white paper entitled,
Guiding Principles for the Future of Loss Mitigation: How the Lessons Learned from the Financial Crisis can Influence the Path Forward. The white paper details five key principles for the future of loss mitigation. The key principles set forth in the white paper are:
In 2016, the Enterprises developed the Flex Modification, which is described below, with these key principles in mind. In 2017, FHFA required the Enterprises to evaluate possible changes to the existing loss mitigation options for borrowers that include repayment plans, forbearance plans, short sales, and deeds-in-lieu of foreclosure, to reflect the key principles developed for the future of loss mitigation.
The suite of programs detailed below encompasses the core loss mitigation programs currently offered by the Enterprises. This is not meant to be a comprehensive list of every program an Enterprise may offer. The loss mitigation programs listed are solely for Enterprise loans, and different loan options are available for government insured loans (e.g., FHA-insured loans) or for loans that are not owned or guaranteed by the Enterprises. Not all borrowers will be eligible for a particular program, and other terms or conditions may apply.
In a repayment plan, past due amounts are added on to the borrower’s mortgage payment to be repaid over several months in order to bring the mortgage current. Repayment plans allow a borrower time to catch up on late payments without having to come up with a lump sum.
Forbearance plans allow a borrower to make reduced mortgage payments or no mortgage payments for a specific period of time. The borrower gains time to improve their financial situation and possibly qualify for a better option than would be available at that time. Forbearance may be granted for borrowers in temporary or short-term financial difficulty. At the conclusion of the forbearance period the borrower is required to pay any missed payments or amounts, which is generally achieved with a repayment plan or modification.
In 2016, FHFA required the Enterprises to develop an aligned post-crisis loan modification program that built on lessons learned from the crisis-era modification programs. The aligned effort resulted in the Flex Modification, announced in
December 2016. Flex Modification replaced Standard and Streamlined Modifications. Servicers were required to implement Flex Modification by October 1, 2017.
Flex Modification terms are:
Flex Modification requires servicers to offer a modification to eligible borrowers who are at least 90 days delinquent, without requiring a borrower to submit any documentation.
Short Sale is a foreclosure alternative where a borrower sells the home for less than the balance remaining on the mortgage. The borrower sells the home and pays off a portion of the mortgage balance with the proceeds. The borrower may be required to pay off the remaining mortgage balance. A short sale allows a borrower to transition out of the home without going through foreclosure. In some cases, relocation assistance may be available.
Deed-in-Lieu is a foreclosure alternative where a borrower voluntarily transfers the ownership of the property to the owner of the mortgage in exchange for a release from the mortgage loan and payments. The borrower may be required to pay off the remaining mortgage balance if the value of the property is lower than the amount owed. A deed-in-lieu allows the borrower to transition out of the home without going through foreclosure. In some cases, borrowers may be eligible for relocation assistance.
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