FHFA Releases 2023 Scorecard for Fannie Mae, Freddie Mac, CSS
The Federal Housing Finance Agency on Wednesday released the 2023 Scorecard for Fannie Mae and Freddie Mac and their joint venture, Common Securitization Solutions LLC.
Each year, FHFA releases an annual Scorecard to communicate and provide public awareness of its priorities and expectations for the government-sponsored enterprises and CSS. “The annual Scorecard is an important tool for ensuring that the Enterprises operate in a safe and sound manner and fulfill their mission requirements,” said FHFA Director Sandra L. Thompson. “The 2023 Scorecard builds on the progress made in 2022 to strengthen the Enterprises’ capital position while advancing equitable and sustainable access to homeownership and rental housing.”
The 2023 Scorecard focuses on specific Enterprise goals that address affordability, fair lending, and equity, in addition to modernizing single-family appraisal processes and continuing to prioritize climate risks. The Scorecard also ensures that the Enterprises employ effective risk management systems and maintain sufficient liquidity to sustain operations through severe stress events.
For all Scorecard items, Fannie Mae and Freddie Mac and CSS will be assessed based on the following criteria:
• Each Enterprise’s products and programs foster liquid, competitive, efficient, and resilient housing finance markets that support affordable, sustainable, and equitable access to homeownership and rental housing.
• 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 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 homeowners, multifamily property owners, 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 Scorecard can be accessed at https://www.fhfa.gov/AboutUs/Reports/ReportDocuments/2023-Scorecard.pdf.