The Federal Housing Finance Agency’s (FHFA) annual Performance and Accountability Report included a Government Accountability Office (GAO) unmodified audit opinion on its FY 2021 financial statements.
The analysis focused on the agency’s work as the Federal Home Loan Bank System regulator while also fulfilling responsibilities as Fannie Mae and Freddie Mac regulator and conservator during fiscal year 2021.
Authorities noted the unmodified audit opinion served as the 13th consecutive year in which the opinion was issued, adding the GAO noted no material weaknesses or significant deficiencies in FHFA’s internal controls. The GAO also found no instances of reportable noncompliance with the applicable laws and regulations it tested, according to the FHFA.
“FHFA is responding to shortages in the overall housing supply by ensuring our regulated entities finance the existing affordable housing stock, enable homes in disrepair to be rehabilitated and support the growth of our nation’s housing supply,” FHFA Acting Director Sandra Thompson said via her message included in the report. “As these shortages contribute to worsening affordability, a key priority for our regulated entities will be to support affordable housing in a safe and sound manner.”
Thompson said FHFA continues to strengthen the safety and soundness of its regulated entities. In fiscal year 2021, the agency finalized a regulatory capital rule for Fannie Mae and Freddie Mac designed to ensure financial health throughout the economic cycle.
“Upon gaining experience with the implementation of that framework, we followed up by proposing two enhancements that will ensure the rule operates as intended and transfers risk away from taxpayers and to private markets,” Thompson concluded. “After considering public comments received, FHFA will finalize these enhancements in FY 2022.”