Fannie Mae and Freddie Mac Require Investment, DeMarco Says
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With no plan from Congress or the Obama administration to shutter Fannie Mae and Freddie Mac, the companies’ regulator told Congress today it will expand its oversight with a strategic plan to develop new systems and standards for home loans.
The companies, which own or guarantee most of the nation’s mortgages, exist in an extended policy limbo that poses new risks to taxpayers and the housing market, said Edward J. DeMarco, acting director of the Federal Housing Finance Agency. The mandate to protect taxpayers must be balanced with the need to invest in staff and infrastructure, he said.