The Federal Housing Financing Agency ( FHFA ) is an independent federal agency created as a successful governing body of the Federal Housing Finance Agency (FHFB), the Office of Federal Housing Companies (OFHEO), and the government-sponsored team of the US Government-sponsored Department of Housing and Urban Development, absorbs the power and regulatory authority of both entities, with expanded legal and regulatory authority, including the ability to put government-sponsored enterprises into curators or conservatories.
In his role as regulator, he arranges Fannie Mae, Freddie Mac, and 11 Federal Bank Home Loans (FHLBanks, or FHLBank System). It's completely separate from the Federal Housing Administration, which mostly provides mortgage insurance.
Video Federal Housing Finance Agency
Histori
The law establishing the FHFA is the 2008 Federal Housing Financial Regulatory Reform Act, which is Division A of the Greater Housing and Economic Recovery Act of 2008, Public Law 110-289, signed on 30 July 2008 by President George W. Bush. One year after the law is signed, OFHEO and FHFB are out of existence. All existing laws, orders and decisions of OFHEO and the Financial Council remain in force until amended or replaced.
On the day of the signing of the law, former Director James Lockhart stated:
For more than two years as a Director of OFHEO I have been working to help create FHFA so that the new GSE regulator has much greater authority than its predecessor. As FHFA Director, I am committed that we will use this authority to ensure that GSE housing provides stability and liquidity to the mortgage market, supports affordable housing and operates safely and healthily.
The Director of FHFA Lockhart sent a "notice of incorporation", to be published in the Federal Register on September 4, 2008. The notice officially announces the existence and authority of the agent to act.
Conservator
On September 7, 2008, FHFA director Lockhart announced he had placed Fannie Mae and Freddie Mac under the FHFA conservatory. The move is "one of the largest government interventions in private financial markets in decades". US Treasury Secretary Henry M. Paulson, who appeared at the same press conference, stated that putting two GSEs into the conservator was a wholly supported decision, and said that he suggested "that conservatories are the only form in which I will make paying money taxes for the GSE. "He further said that" I attribute the need for today's actions primarily to inherent conflicts and incorrect business models embedded in the GSE structure, and to ongoing housing correction. "
In the announcement, Lockhart pointed out the following in the action plan for the conservatory:
Settings for financial institutions
FHFA in 2011 filed its first lawsuit against UBS and then fought 17 other financial institutions that accused them of misrepresenting about $ 200 billion mortgage-backed securities sold to Fannie Mae and Freddie Mac. The lawsuit, some of which call each defendant, accuse violations of federal securities laws and common law and portray "a burdensome portrait of the excesses of housing bubbles." Jas looks for various damages and civil punishments.
Maps Federal Housing Finance Agency
FHFA settlement for counterfeit sales by PLS to Fannie Mae and Freddie Mac
The Federal Housing Finance Agency initiated litigation against 18 financial institutions involving allegations of breach of securities law and, in some cases, fraud in the sale of private-label securities (PLS) to Fannie Mae and Freddie Mac.
Below is a list of cases, with the number of completions reached in 2013 and 2014.
1. General Electric Company $ 6.25 million 2. CitiGroup Inc. $ 250 million 3 . UBS Americas, Inc. (Union Bank of Switzerland) $ 885 million
4. J.P. Morgan Chase & amp; Co $ 4 miliar 5. Deutsche Bank AG $ 1.925 miliar 6. Ally Financial, Inc. $ 475 juta
7. Morgan Stanley $ 1.25 billion 8. SG America (Societe Generale) $ 122 million 9. Credit Suisse Holdings (USA) Inc $ 885 million
(10. Bank of America Corp. 11. Merrill Lynch & Co. 12. State Finance Corporation $ 5.83 billion )
13. Barclays Bank PLC $ 280 million 14. First Horizon National Corp $ 110 million 15. RBS Securities, Inc. (in Ally's action) $ 99.5 million
16. Goldman Sachs & amp; Co $ 1.2 billion 17. HSBC North America Holdings, Inc. (Hong Kong Shanghai Banking Corp.) $ 550 million
Non Litigation PLS Settlement Wells Fargo Bank, N.A. $ 335.23 million
Leadership
After Lockhart's departure, Edward J. DeMarco was appointed Director of FHFA Officials on August 25, 2009.
On May 1, 2013, President Barack Obama nominated Mel Watt as the next FHFA chief. After the Democrats eliminate the rules that allow filibrators in the nomination of the executive branch, the US Senate affirms Watt on December 10, 2013.
See also
- Title 12 of the Federal Regulatory Code
References
Further reading
- Federal Housing Financial Supervision: Hearing before Banking, Housing and Urban Affairs Committee, United States Senate, Congress of One Hundred Twelve, First Session, 15 November and 13 December 2011
- Supervision of Federal Housing Finance Institutions: Heard before the Subcommittee on Monitoring and Investigation of the Financial Services Committee, US House of Representatives, One Hundred Twelve Congresses, First Session, December 1, 2011
External links
- Official website
- Federal Housing Finance Agency in the Federal Register
- The Office of Federal Housing Enterprise Supervision in the Federal Register
Source of the article : Wikipedia
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