Republican members of the House Housing, Community Development, and Insurance Subcommittee are urging the Federal Housing Finance Agency (FHFA) to provide oversight of activities under Fannie Mae and Freddie Mac.
“The Enterprises [Fannie Mae and Freddie Mac] have a history of venturing into new activities and product offerings that go well beyond their congressionally approved roles in the secondary market. The FHFA must do more to ensure there is appropriate transparency regarding any new products or activities that the Enterprises undertake and that these activities do not displace private firms or crowd out private capital,” the Republican subcommittee members wrote in a letter to FHFA Director Sandra Thompson.
The letter was signed by 10 Republican members, including U.S. Rep. French Hill (R-AR), ranking member on the subcommittee.
“Therefore, we strongly urge you to take one of your first actions as the Director to finalize the long-overdue rulemaking on Prior Approval of Enterprise Products, which was proposed in October 2020 and would ensure there is adequate oversight and transparency around new products and activities the Enterprises bring into the market,” they added in the letter.
As the regulator and conservator of Fannie and Freddie, the GOP lawmakers said the FHFA must properly oversee their operation and ensure that all their activities comply with their congressional charter.
“Pilot programs should not be operating as back doors for the Enterprises to expand into areas already being served by the private sector or to push a housing policy agenda that introduces unacceptable risk to taxpayers,” they added.