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65-451: On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac ). The action has been described as "one of the most sweeping government interventions in private financial markets in decades". As of the start of the conservatorship,

130-752: A central role in the US housing finance system". The U.S. Treasury Department and the Federal Reserve took steps to bolster confidence in the corporations, including granting both corporations access to Federal Reserve low-interest loans (at similar rates as commercial banks) and removing the prohibition on the Treasury Department to purchase the GSEs' stock. Despite these efforts, by August 2008, shares of both Fannie Mae and Freddie Mac had tumbled more than 90% from their one-year prior levels. Each week Freddie Mac publishes

195-473: A county-by-county basis and can be as much as 150% of the baseline value. This upper-bound is often referred to as the high-cost area ceiling. The high-cost area limits are set at 115% of the highest county median house price in the local area as long as that amount does not exceed the ceiling. Per the Federal Housing Finance Agency : *As mentioned above, since legislative changes in 2008,

260-587: A fair-value basis using guidelines set forth by the Financial Accounting Standards Board . The changes made by the bill would mean that Fannie Mae and Freddie Mac were counted on the budget instead of considered separately and would mean that the debt of those two programs would be included in the national debt. These programs themselves would not be changed, but how they are accounted for in the United States federal budget would be. The goal of

325-475: A majority of investors believe that the government would prevent a disastrous default. Vernon L. Smith, 2002 Nobel Laureate in economics, has called FHLMC and FNMA "implicitly taxpayer-backed agencies". The Economist has referred to "the implicit government guarantee" of FHLMC and FNMA. The then director of the Congressional Budget Office , Dan L. Crippen, testified before Congress in 2001, that

390-534: A mortgage is considered a jumbo loan . The conforming loan limit is 50 percent higher in such high-cost areas as Alaska , Hawaii , Guam and the US Virgin Islands , and is also higher for 2–4 unit properties on a graduating scale. Modifications to these limits were made temporarily to respond to the housing crisis, see jumbo loan for recent events. The FHLMC states, "securities, including any interest, are not guaranteed by, and are not debts or obligations of,

455-541: A national average of mortgage rates called the Primary Mortgage Market Survey (PMMS). The PMMS tracks a constant borrower profile of conventional, conforming fully-amortizing home purchase loans with 20% down and excellent credit borrowers. Rates are published for the most popular mortgage products, the 30-year and 15-year fixed-rate. Rates are released each week on Thursdays. The PMMS began in April 1971 with

520-480: A precipitous increase in home foreclosures. As a result, home prices declined as increasing foreclosures added to the already large inventory of homes and stricter lending standards made it more and more difficult for borrowers to get mortgages. This depreciation in home prices led to growing losses for the GSEs, which back the majority of US mortgages. In July 2008, the government attempted to ease market fears by reiterating their view that "Fannie Mae and Freddie Mac play

585-466: A select number of counties have been assigned high-cost area limits that exceed the baseline CLL (i.e. in 2022, high-cost area limits exist for slightly more than 100 counties out of over 3000 in the United States). These local limits cannot exceed the high-cost area ceiling which also varies by the number of units in a property. Recently, as the baseline CLL has been increasing since 2017, there have been

650-575: A shift toward riskier mortgages and private label MBS distribution. Earnings depended on volume, so maintaining elevated earnings levels necessitated expanding the borrower pool using lower underwriting standards and new products that the GSEs would not (initially) securitize. Thus, the shift away from GSE securitization to private-label securitization (PLS) also corresponded with a shift in mortgage product type, from traditional, amortizing, fixed-rate mortgages (FRMs) to nontraditional, structurally riskier, nonamortizing, adjustable-rate mortgages (ARMs), and in

715-583: A traditional survey approach, Freddie Mac transitioned to replacing lender survey responses with actual loan application data submitted by lenders to Freddie Mac's automated underwriting system . Data is collected from the previous Thursday until the Wednesday before the publication date. Changes in PMMS rates are widely reported in national media. * Interim As of March 2024. In 2003, Freddie Mac revealed that it had understated earnings by almost $ 5 billion, one of

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780-555: A variety of violations of federal securities law and common law and paint "a damning portrait of the excesses of the housing bubble." The suits seek a variety of damages and civil penalties. UBS Agrees to Pay $ 1.435 Billion to Resolve Claims That It Made Misrepresentations in the Sale of Residential Mortgage-Backed Securities The Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of securities law violations and, in some instances, fraud in

845-548: Is a non-conforming loan . A loan that does not meet guidelines specifically because the loan origination amount exceeds the guideline limits during its acquisition year is known as a jumbo loan . Starting in 1970, Fannie Mae was authorized by the United States Government to purchase residential mortgage loans . Fannie Mae worked with Freddie Mac to develop uniform mortgage documents and national standards for conventional mortgages. Both entities are regulated by

910-467: Is above the CLL then a mortgage is considered a jumbo loan , and typically has higher rates associated with it. This is because both Fannie Mae and Freddie Mac only buy loans that are conforming, to repackage into the secondary market , making the demand for a non-conforming loan much less. By virtue of the laws of supply and demand, then, it is harder for lenders to sell the loans, thus it would cost more to

975-525: The Budget and Accounting Transparency Act of 2014 (H.R. 1872; 113th Congress) into the United States House of Representatives during the 113th United States Congress . The bill, if it were passed, would modify the budgetary treatment of federal credit programs, such as Fannie Mae and Freddie Mac. The bill would require that the cost of direct loans or loan guarantees be recognized in the federal budget on

1040-557: The Consumer Financial Protection Bureau , that the inability for the President to terminate the FHFA director beyond "for cause" was unconstitutional, but otherwise left the agency's power as is. President Biden replaced Calabria with Sandra L. Thompson as Acting Director, who is expected to end Calabria's policy of phasing out the conservatorship. Brian M. Tomney was nominated by President Joe Biden and confirmed by

1105-527: The Democratic National Convention have not yet submitted their filings on how much they received from Freddie Mac and Fannie Mae. On September 7, 2008, Federal Housing Finance Agency (FHFA) Director James B. Lockhart III announced pursuant to the financial analysis, assessments and statutory authority of the FHFA, he had placed Fannie Mae and Freddie Mac under the conservatorship of the FHFA. FHFA has stated that there are no plans to liquidate

1170-419: The Federal Housing Finance Agency which calculates and sets the conforming loan limit on an annual basis based on statutory guidance. Fannie Mae and Freddie Mac are continuously in the market for conforming loans; because of this, conforming loans benefit from greater liquidity than non-conforming loans. The Federal Housing Finance Agency (FHFA) publishes annual conforming loan limit (CLL) that restricts

1235-542: The Federal National Mortgage Association (Fannie Mae) was the sole institution that bought mortgages from depository institutions, principally savings and loan associations, which encouraged more mortgage lending and effectively insured the value of mortgages by the US government. In 1968, Fannie Mae split into a private corporation and a publicly financed institution. The private corporation was still called Fannie Mae and its charter continued to support

1300-552: The Office of Federal Housing Enterprise Oversight , issued the results of a 27-month-long investigation. On May 25, 2006, Senator McCain joined as a co-sponsor to the Federal Housing Enterprise Regulatory Reform Act of 2005 (first put forward by Sen. Chuck Hagel) where he pointed out that Fannie Mae and Freddie Mac's regulator reported that profits were "illusions deliberately and systematically created by

1365-618: The United States Department of the Treasury had contracted to acquire US$ 1 billion in Freddie Mac senior preferred stock, paying at a rate of 10% per year, and the total investment may subsequently rise to as much as US$ 100 billion. Shares of Freddie Mac stock, however, plummeted to about one U.S. dollar on September 8, 2008, and dropped a further 50% on June 16, 2010, when the stocks delisted due to falling below minimum share prices for

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1430-456: The "debt and mortgage-backed securities of GSEs are more valuable to investors than similar private securities because of the perception of a government guarantee." The FHLMC receives no direct federal government aid. However, the corporation and the securities it issues are thought to benefit from government subsidies. The Congressional Budget Office writes, "There have been no federal appropriations for cash payments or guarantee subsidies. But in

1495-582: The 11 Federal Home Loan Banks (FHLBanks, or FHLBank System). It is wholly separate from the Federal Housing Administration , which largely provides mortgage insurance . In September 2019, the Fifth Circuit Court of Appeals , in an en banc opinion, ruled that the structure of the FHFA violated constitutional separation of powers because its director could not be removed by the president. The U.S. Supreme Court affirmed that part of

1560-525: The 1989 to 2008 time period include five Republicans and five Democrats. Top recipients of PAC money from these organizations include Roy Blunt (R-MO) $ 78,500 (total including individuals' contributions $ 96,950), Robert Bennett (R-UT) $ 71,499 (total $ 107,999), Spencer Bachus (R-AL) $ 70,500 (total $ 103,300), and Kit Bond (R-MO) $ 95,400 (total $ 64,000). The following Democrats received mostly individual contributions from employees, rather than PAC money: Christopher Dodd , (D-CT) $ 116,900 (but also $ 48,000 from

1625-461: The 30-year fixed-rate average and the 1-year ARM and 15-year fixed-rate products were added in 1984 and 1991 respectively. In January 2005, the 5/1 hybrid ARM was added and it was discontinued in November 2022. In January 2016, the 1-year ARM was discontinued. Prior to November 2022, the PMMS collected data by surveying lenders across a proportional mix of lending institutions. Following challenges using

1690-399: The FHFA. The action was "one of the most sweeping government interventions in private financial markets in decades". U.S. Treasury Secretary Henry M. Paulson , appearing at the same press conference, stated that placing the two GSEs into conservatorship was a decision he fully supported, and said that he advised "that conservatorship was the only form in which I would commit taxpayer money to

1755-604: The Federal Housing Enterprise Regulatory Reform Act of 2005. The bill was sponsored and introduced in the Senate on January 26, 2005 by Senator Chuck Hagel (R–NE) and co-sponsored by Senators Elizabeth Dole (R–NC) and John Sununu (R–NH). The S. 190 bill was reported out of the Senate Banking Committee on July 28, 2005, but never voted on by the full Senate.   On May 23, 2006, the Fannie Mae and Freddie Mac regulator,

1820-493: The Finance Board remain in effect until modified or superseded. On the day of the law's signing, former Director James Lockhart stated: For more than two years as Director of OFHEO I have worked to help create FHFA so that this new GSE regulator has far greater authorities than its predecessors. As Director of FHFA, I commit that we will use these authorities to ensure that the housing GSEs provide stability and liquidity to

1885-625: The GSEs guaranteed the performance of their MBS, private securitizers generally did not, and might only retain a thin slice of risk. Additionally, Freddie Mac was bound by underwriting guidelines, limiting them to only purchasing conforming loans that required certain debt-to-income and loan-to-value ratios, in addition to other metrics. From 2001 to 2003, financial institutions experienced high earnings due to an unprecedented re-financing boom brought about by historically low interest rates. When interest rates eventually rose, financial institutions sought to maintain their elevated earnings levels with

1950-637: The GSEs." He further said that "I attribute the need for today's action primarily to the inherent conflict and flawed business model embedded in the GSE structure, and to the ongoing housing correction." In the announcement, Lockhart indicated the following items in the plan of action for the conservatorship: The FHFA in 2011 filed suit first against UBS then against 17 other financial institutions accusing them of misrepresenting about $ 200 billion in mortgage-backed securities sold to Fannie Mae and Freddie Mac. The suits, some of which name individual defendants, allege

2015-449: The NYSE. In 2008, the yield on U.S Treasury securities rose in anticipation of increased U.S. federal debt. The housing market and economy eventually recovered, making Freddie Mac profitable once again. Freddie Mac is ranked No. 45 on the 2023 Fortune 500 list of the largest United States corporations by total revenue, and has $ 3.208 trillion in assets under management. From 1938 to 1968,

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2080-708: The Obama presidential campaign have been determined to be false; James Johnson, former aide to Democratic Vice-President Walter Mondale and ex-head of Obama's Vice-Presidential Selection Committee, CEO from 1991 to 1998; and Jamie Gorelick , former Deputy Attorney General to President Clinton, and Vice-Chairman from 1998 to 2003. In his position, Johnson earned an estimated $ 21 million; Raines earned an estimated $ 90 million; and Gorelick earned an estimated $ 26 million. Three of these four top executives were also involved in mortgage-related financial scandals. The top 10 recipients of campaign contributions from Freddie Mac and Fannie Mae during

2145-511: The PACs), John Kerry , (D-MA) $ 109,000 ($ 2,000 from PACs), Barack Obama , (D-IL) $ 120,349 (only $ 6,000 from the PACs), Hillary Clinton , (D-NY) $ 68,050 (only $ 8,000 from PACs). John McCain received $ 21,550 from these GSEs during this time, mostly individual money. Freddie Mac also contributed $ 250,000 to the 2008 Republican National Convention in St. Paul, Minnesota according to FEC filings. The organizers of

2210-441: The Treasury Department to own stock. This event also renewed calls for stronger regulation of GSEs by the government. President Bush recommended a significant regulatory overhaul of the housing finance industry in 2003, but many Democrats opposed his plan, fearing that tighter regulation could greatly reduce financing for low-income housing, both low- and high-risk. Bush opposed two other acts of legislation:[1][2] Senate Bill S. 190,

2275-403: The U.S. Department of Housing and Urban Development government-sponsored enterprise mission team, absorbing the powers and regulatory authority of both entities, with expanded legal and regulatory authority, including the ability to place government-sponsored enterprises (GSEs) into receivership or conservatorship . In its role as regulator, it regulates Fannie Mae , Freddie Mac , and

2340-501: The U.S. Senate to serve as Inspector General for the Federal Housing Finance Agency. Sworn into office on March 14, 2022, Tomney is the third Senate confirmed Inspector General for FHFA. Laura S. Wertheimer was nominated as Inspector General of the Federal Housing Finance Agency by President Barack Obama and confirmed by the U.S. Senate on September 17, 2015. On June 29, 2021, Wertheimer announced she would be leaving

2405-612: The U.S.'s $ 12 trillion mortgage market. This made both corporations highly susceptible to the subprime mortgage crisis of that year. Ultimately, in July 2008, the speculation was made reality, when the US government took action to prevent the collapse of both corporations. The US Treasury Department and the Federal Reserve took several steps to bolster confidence in the corporations, including extending credit limits, granting both corporations access to Federal Reserve low-interest loans (at similar rates as commercial banks), and potentially allowing

2470-650: The United States or any agency or instrumentality of the United States other than Freddie Mac." The FHLMC and FHLMC securities are not funded or protected by the US Government. FHLMC securities carry no government guarantee of being repaid. This is explicitly stated in the law that authorizes GSEs, on the securities themselves, and in public communications issued by the FHLMC. There is a widespread belief that FHLMC securities are backed by some sort of implied federal guarantee and

2535-421: The ability to monitor and control mortgage originators. Competition between the GSEs and private securitizers for loans further undermined GSEs power and strengthened mortgage originators. This contributed to a decline in underwriting standards and was a major cause of the financial crisis. Investment bank securitizers were more willing to securitize risky loans because they generally retained minimal risk. Whereas

2600-471: The bill is to improve the accuracy of how some programs are accounted for in the federal budget. Federal Housing Finance Agency The Federal Housing Finance Agency ( FHFA ) is an independent federal agency in the United States created as the successor regulatory agency of the Federal Housing Finance Board (FHFB), the Office of Federal Housing Enterprise Oversight (OFHEO), and

2665-448: The company was lagging behind and should "do more". Freddie Mac was put under a conservatorship of the U.S. federal government on Sunday, September 7, 2008. Freddie Mac's primary method of making money is by charging a guarantee fee on loans that it has purchased and securitized into mortgage-backed security (MBS) bonds. Investors, or purchasers of Freddie Mac MBS, are willing to let Freddie Mac keep this fee in exchange for assuming

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2730-573: The company's senior management". However, this regulation too met with opposition from both Democrats and Republicans. Several executives of Fannie Mae or Freddie Mac include Kenneth Duberstein , former Chief of Staff to President Reagan, advisor to John McCain 's Presidential Campaign in 2000 , and President George W. Bush's transition team leader (Fannie Mae board member 1998–2007); Franklin Raines , former Budget Director for President Clinton, CEO from 1999 to 2004—statements about his role as an advisor to

2795-563: The company. The announcement followed reports two days earlier that the Federal government was planning to take over Fannie Mae and Freddie Mac and had met with their CEOs on short notice. The authority of the U.S. Treasury to advance funds for the purpose of stabilizing Fannie Mae or Freddie Mac is limited only by the amount of debt that the entire federal government is permitted by law to commit to. The July 30, 2008, law enabling expanded regulatory authority over Fannie Mae and Freddie Mac increased

2860-422: The conforming loan limit. The most well-known guideline is the size of the loan, which for 2024 was generally limited to $ 766,550 for one-unit single family homes in the continental US . Other guidelines include borrower's loan-to-value ratio (i.e. the size of down payment ), debt-to-income ratio , credit score and history, documentation requirements, etc. In general, any loan that does not meet guidelines

2925-492: The consumers (typically 1/4 to 1/2 of a percent.) A temporary increase in the CLL for high-cost areas of living was incorporated into the 2008 economic stimulus package. Congress authorized an increase of the single family residences limits to the lesser of $ 729,750 or 125% of the median home value within a metropolitan statistical area (MSA). The new Jumbo-Conforming program was adopted by Fannie Mae and Freddie Mac effective from April 1, 2008 until December 31, 2010. The bill

2990-544: The credit risk. That is, Freddie Mac guarantees that the principal and interest on the underlying loan will be paid back regardless of whether the borrower actually repays. Owing to Freddie Mac's financial guarantee, these MBS are particularly attractive to investors and, like other Agency MBS, are eligible to be traded in the "to-be-announced", or "TBA" market. The GSEs are allowed to buy only conforming loans , which limits secondary market demand for non-conforming loans. The relationship between supply and demand typically renders

3055-518: The highest origination amount for a mortgage that can be purchased or securitized by Fannie Mae and Freddie Mac . Loan limits may increase each year based on the year-over-year percentage change in the FHFA House Price Index (FHFA HPI) as calculated during the third quarter of the year using the nominal, seasonally adjusted, expanded-data version of the FHFA HPI. If a loan's origination amount

3120-585: The holding. The law establishing the FHFA is the Federal Housing Finance Regulatory Reform Act of 2008, which is Division A of the larger Housing and Economic Recovery Act of 2008 , Public Law 110-289, signed on July 30, 2008 by President George W. Bush . One year after the law was signed, the OFHEO and the FHFB went out of existence. All existing regulations, orders and decisions of OFHEO and

3185-541: The illegal fund raising benefited members of the House Financial Services Committee , a panel whose decisions can affect Freddie Mac. Notably, Freddie Mac held more than 40 fundraisers for House Financial Services Chairman Michael Oxley (R-OH). Both Fannie Mae and Freddie Mac often benefited from an implied guarantee of fitness equivalent to truly federally backed financial groups. As of 2008, Fannie Mae and Freddie Mac owned or guaranteed about half of

3250-572: The largest corporate restatements in U.S. history. As a result, in November, it was fined $ 125 million—an amount called "peanuts" by Forbes magazine. On April 18, 2006, Freddie Mac was fined $ 3.8 million, by far the largest amount ever assessed by the Federal Election Commission, as a result of illegal campaign contributions. Freddie Mac was accused of illegally using corporate resources between 2000 and 2003 for 85 fundraisers that collected about $ 1.7 million for federal candidates. Much of

3315-471: The mortgage market, support affordable housing and operate safely and soundly. FHFA director Lockhart transmitted a "notice of establishment," for publication in the Federal Register on September 4, 2008. The notice formally announced the agency's existence and authority to act. On September 7, 2008, FHFA director Lockhart announced he had put Fannie Mae and Freddie Mac under the conservatorship of

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3380-602: The national debt ceiling by US$ 800 billion, to a total of US$ 10.7 trillion in anticipation of the potential need for the Treasury to have the flexibility to support the federal home loan banks. On September 7, 2008, the U.S. government took control of both Fannie Mae and Freddie Mac. Daniel Mudd (CEO of Fannie Mae) and Richard Syron (CEO of Freddie Mac) were replaced. Herbert M. Allison , former vice chairman of Merrill Lynch , took over Fannie Mae, and David M. Moffett , former vice chairman of US Bancorp, took over Freddie Mac. On May 8, 2013, Representative Scott Garrett introduced

3445-710: The newly private Fannie Mae and to further increase the availability of funds to finance mortgages and home ownership, Congress then established the Federal Home Loan Mortgage Corporation (Freddie Mac) as a private corporation through the Emergency Home Finance Act of 1970 . The charter of Freddie Mac was essentially the same as Fannie Mae's newly private charter: to expand the secondary market for mortgages and mortgage-backed securities by buying mortgages made by savings and loan associations and other depository institutions. Initially, Freddie Mac

3510-403: The next FHFA head. After Democrats eliminated rules allowing filibusters on executive branch nominations , the U.S. Senate confirmed Watt on December 10, 2013. On December 21, 2018, President Donald Trump designated Comptroller of the currency Joseph Otting to be Acting Director of FHFA upon completion of Director Watt's term, effective January 7, 2019. In April 2019, Mark A. Calabria

3575-452: The non-conforming loan harder to sell (fewer competing buyers); thus it would cost the consumer more (typically 1/4 to 1/2 of a percentage point, and sometimes more, depending on credit market conditions). OFHEO , now merged into the new FHFA , annually sets the limit of the size of a conforming loan in response to the October to October change in mean home price. Above the conforming loan limit,

3640-415: The place of federal funds the government provides considerable unpriced benefits to the enterprises. Government-sponsored enterprises are costly to the government and taxpayers. The benefit is currently worth $ 6.5 billion annually." As mortgage originators began to distribute more and more of their loans through private label mortgage-backed securities (MBSs), government-sponsored enterprises (GSEs) lost

3705-490: The position on July 30, 2021. This followed calls from Republican Senators Chuck Grassley and Ron Johnson for her removal in the preceding weeks, and a critical CIGIE report released on April 29, 2021. Conforming loan In the United States , a conforming loan is a mortgage loan that both meets the underwriting guidelines of Fannie Mae and Freddie Mac (the Enterprises or GSE ) and that does not exceed

3770-599: The purchase of mortgages from savings and loan associations and other depository institutions, but without an explicit insurance policy that guaranteed the value of the mortgages. The publicly financed institution was named the Government National Mortgage Association (Ginnie Mae) and it explicitly guaranteed the repayments of securities backed by mortgages made to government employees or veterans (the mortgages themselves were also guaranteed by other government organizations). To provide competition for

3835-412: The sale of private-label securities (PLS) to Fannie Mae and Freddie Mac. Below is a list of the cases, with amounts of any settlements reached in 2013 and 2014. Non-Litigation PLS Settlements Wells Fargo Bank, N.A. $ 335.23 million Upon Lockhart's departure, Edward DeMarco was appointed Acting Director of FHFA on August 25, 2009. On May 1, 2013, President Barack Obama nominated Mel Watt as

3900-420: The start of a sharp deterioration in mortgage underwriting standards. The growth of PLS, however, forced the GSEs to lower their underwriting standards in an attempt to reclaim lost market share to please their private shareholders. Shareholder pressure pushed the GSEs into competition with PLS for market share, and the GSEs loosened their guarantee business underwriting standards in order to compete. In contrast,

3965-436: The wholly public FHA/Ginnie Mae maintained their underwriting standards and instead ceded market share. The growth of private-label securitization and lack of regulation in this part of the market resulted in the oversupply of underpriced housing finance that led, in 2006, to an increasing number of borrowers, often with poor credit, who were unable to pay their mortgages—particularly with adjustable rate mortgages (ARM) —caused

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4030-518: Was confirmed to a five year term as director. At the time of his confirmation, the chair of the Senate Banking Committee said that Calabria had committed to working with the Senate toward ending the conservatorship over Fannie Mae and Freddie Mac. In the Supreme Court case Collins v. Yellen , the Supreme Court ruled that, as they had in Seila Law LLC v. Consumer Financial Protection Bureau for

4095-469: Was formed, and subjected to oversight by the U.S. Department of Housing and Urban Development (HUD). Separately, The Federal Housing Finance Board (FHFB) was created as an independent agency to take the place of the FHLBB, to oversee the 12 Federal Home Loan Banks (also called district banks). In 1995, Freddie Mac began receiving affordable housing credit for buying subprime securities, and by 2004, HUD suggested

4160-706: Was owned by the twelve Federal Home Loan Banks and governed by the Federal Home Loan Bank Board . In 1989, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") revised and standardized the regulation of Fannie Mae and Freddie Mac. It also severed Freddie Mac's ties to the Federal Home Loan Bank System. The Federal Home Loan Bank Board (FHLBB) was abolished and replaced by different and separate entities. An 18-member board of directors for Freddie Mac

4225-486: Was signed into law by President Bush on February 13, 2008, but the new rates were not being honored by any lenders (as of March 30, 2015). The baseline CLL for 2017 increased and applied to loans delivered to Fannie Mae in 2017 (even if originated prior to 1/1/2017). This was the first time the CLL had increased since 2006. Each subsequent year has seen a further increase in the baseline CLL. Statutory provisions also provide for high-cost area loan limits that are defined on

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