FHFA Releases 2021 Scorecard for GSEs, Common Securitization Solutions

The Federal Housing Finance Agency last week released the 2021 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions. The 2021 Scorecard aligns the 2019 Strategic Plan with the Enterprises’ tactical priorities and operations, serving as an essential tool to hold the Enterprises accountable. 

“The 2021 Scorecard will ensure that Fannie Mae, Freddie Mac and Common Securitization Solutions properly serve borrowers and renters, protect taxpayers, and support the secondary mortgage market,” said Director Mark Calabria.

The three objectives of the 2021 Scorecard are to ensure that the Enterprises continue to:

  1. Focus on their core mission responsibilities to foster competitive, liquid, efficient and resilient (CLEAR) national housing finance markets that support sustainable homeownership and affordable rental housing;
  2. Operate in a safe and sound manner appropriate for entities in conservatorship; and 
  3. Prepare for their eventual exits from the conservatorships. 

Resolution planning requirements are new to the Scorecard in 2021. The Scorecard requires each Enterprise to begin developing a plan to resolve its business in the event the Enterprise were to be placed in receivership, also known as a “living will.” These plans must demonstrate how the Enterprises would preserve their core businesses with neither  disruption to housing and finance markets nor utilizing extraordinary support from the Treasury Department or taxpayers.

The Enterprises are also expected to implement capital management and capital planning capabilities that transition from the existing Conservatorship Capital Framework to the Enterprise Capital Rule requirements.

Seth Appleton, President of MISMO®, issued the following statement on FHFA’s 2021 Scorecard for the GSEs and CSS:

“As the mortgage industry’s standards organization, we applaud FHFA for highlighting MISMO’s critical work to facilitate the development of standards for servicing transfers. Currently, servicing transfers require an immense investment of time and resources, and MISMO strongly believes that standards will reduce friction and allow for a smoother exchange of information. 

“MISMO plays an essential role as the central point for collaboration among lenders, servicers, regulators, insuring and guaranteeing agencies, GSEs and technology providers, enabling the industry to achieve a more seamless and productive digital future. “MISMO looks forward to continuing its work with the GSEs, CSS and other organizations from across the mortgage finance industry as it leads efforts to create a better digital mortgage experience for consumers and all parties involved in a real estate transaction.” 

Links to 2019 Strategic Plan and 2021 Scorecard

For more information on MISMO, including its Servicing Transfers Development Work Group, click here.