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History Of Fannie Mae And Freddie Mac Conservatorships
On September 6, 2008, with the consent of both Fannie Mae's and Freddie Mac's (the Enterprises) boards of directors, the Director of FHFA exercised statutory authority to place each Enterprise into conservatorship. This established the two conservatorships in response to a substantial deterioration in the housing markets that severely damaged each Enterprise's financial condition and left both of them unable to fulfill their missions without government intervention.
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Senior Preferred Stock Purchase Agreements
Fannie Mae and Freddie Mac continue to operate under conservatorship, as they have since 2008. The U.S. Department of the Treasury (Treasury) provides Fannie Mae and Freddie Mac with financial support through the Senior Preferred Stock Purchase Agreements (SPSPAs), which were executed on September 7, 2008, one day after Fannie Mae and Freddie Mac entered conservatorships (“Original Agreements”) and thereafter amended.
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Building for the Future
Our goal is to energize the rebuilding of the secondary mortgage market so that market participants may again compete with each other to ensure an efficient flow of credit for housing, confident in the knowledge of the risk involved and the rules in place. Making progress on essential infrastructure development, improving standardization, and generating meaningful discussion about rebuilding our housing finance infrastructure should help policymakers tackle critical questions about the government’s role in housing finance.
Conservator Authority
On July 30, 2008, President George W. Bush signed Public Law 110-289, the Housing and Economic Recovery Act of 2008 (HERA), which established FHFA, giving the Agency authority to place regulated entities into conservatorship or receivership.
When Placed in Conservatorships
Fannie Mae and Freddie Mac were placed into conservatorships upon the consent of each board of directors on September 6, 2008. FHFA and the U.S. Department of the Treasury publicly announced details of the conservatorships on September 7, 2008. Read more on History of Fannie Mae & Freddie Mac Conservatorships page.
Why Fannie Mae and Freddie Mac are in Conservatorship
Fannie Mae and Freddie Mac are in conservatorship to preserve and conserve their assets and property and restore them to a sound and solvent condition so they can continue to fulfill their statutory missions.
FHFA's Role as Conservator
As conservator, FHFA has the powers of the management, boards, and shareholders of Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac continue to operate as business corporations.
FHFA is responsible for the overall management of Fannie Mae and Freddie Mac and has informed the Enterprises which decision-making functions should be performed by the Enterprises' boards of directors and/or management teams. The boards and management teams must consult with FHFA and obtain conservator approval as FHFA directs. Overall, the conservator has ultimate authority over all operations of the Enterprises.
Conservatorship Scorecards
The annual Conservatorship Scorecard is FHFA's mechanism for communicating its priorities and expectations for the Enterprises and providing transparency to the public about these expectations. The 2022 Scorecard priorities are promoting sustainable and equitable access to affordable housing and operating the Enterprises’ businesses in a safe and sound manner.
- 2024 Scorecard
- All Scorecards
- Scorecard Progress Reports
Required Reporting
On October 3, 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008 (EESA), providing broad authorities to the Treasury to undertake measures to strengthen financial institutions. EESA included provisions to assist homeowners facing foreclosure and to protect tenants. Section 110 of EESA charges federal property managers (FPMs) to develop and implement plans to maximize assistance for homeowners and encourage servicers of underlying mortgages to take advantage of programs to minimize foreclosures. In addition, each FPM is required to report to Congress every 30 days. The report must contain specific information on the number and types of loan modifications made and the number of actual foreclosures during the reporting period. FHFA is designated as FPM in its role as conservator for Fannie Mae and Freddie Mac under Section 110 of EESA.
FHFA commenced reporting as FPM with its initial transmission to Congress on December 2, 2008. The format and content of the reports has evolved over time. Prior to May 2012, FPM Reports included refinancing activity. Thereafter, they had the same content as the monthly and quarterly Foreclosure Prevention Reports, and FHFA began issuing separate Refinance Reports. In July 2019, FHFA revised these reports again and commenced issuing combined Foreclosure Prevention, Refinance, and Federal Property Manager reports.
Conservatorship Reports and Datasets
Page last updated: February 6, 2024