FHFA Releases 2022 Scorecard for GSEs, CSS

The Federal Housing Finance Agency on Wednesday released its 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions LLC.

The purpose of the 2022 Scorecard is to hold the Enterprises and CSS accountable for fulfilling their core mission requirements by promoting sustainable and equitable access to affordable housing and operating in a safe and sound manner.

“The 2022 Scorecard will better position the Enterprises to support the housing market throughout the economic cycle,” said FHFA Acting Director Sandra L. Thompson. “Key to the Enterprises fulfilling their statutory mandates is their ability to advance sustainable and affordable homeownership and rental housing opportunities, and to improve their capital position by transferring credit risk away from the taxpayer.”

The 2022 Scorecard focuses on specific Enterprise goals that address affordability, fair lending, and equity, in addition to promptly addressing examination and supervision findings, and ensuring sufficient liquidity to sustain the Enterprises through severe stress events. It also ensures that the Enterprises prioritize climate risk, as well as the principles of diversity and inclusion, throughout their decision-making processes.

The Scorecard uses the following assessment criteria:

• Each Enterprise’s products and programs foster sustainable and equitable housing finance markets that support safe, decent, and affordable homeownership and rental opportunities.

• Each Enterprise conducts business in a safe and sound manner.

• Each Enterprise meets expectations under all FHFA requirements, including those pertaining to capital, liquidity and credit risk transfer.

• Each Enterprise continues to manage operations while in conservatorship in a manner that preserves and conserves assets through the prudent stewardship of Enterprise resources.

• Each Enterprise cooperates and collaborates with FHFA to meet the Conservator’s priorities, directives and guidance throughout the course of the year.

• Each Enterprise delivers work products that are high quality, thorough, creative, effective and timely, and that consider effects on borrowers and renters, the Enterprises, the industry and other stakeholders.

• Each Enterprise ensures that diversity, equity and inclusion remain top priorities in strategic planning, operations and business development.

The Enterprises will be assessed on their ability to promote sustainable and equitable access to affordable housing (50 percent); and operate in a safe and sound manner (50 percent).

The Scorecard can be found at https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/2022-Scorecard.pdf.