Replies to post #170162 on Fannie Mae-No Politics (FNMA)

[955]

How is the "winding down" talk in this new proposal keeping in line with FHFA stated mission and goals to "preserve and conserve" the GSE's?


Direct from FHFA website:

http://www.fhfa.gov/Default.aspx?Page=344

Mission Statement:
Ensure that the housing GSEs operate in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment.

What is the purpose of conservatorship?

The purpose of conservatorship is to preserve and conserve each Enterprise's assets and property and restore the Enterprises to a sound financial condition so they can continue to fulfill their statutory mission of promoting liquidity and efficiency in the nation's housing finance markets.

What are the goals of conservatorship?

The goals of the conservatorships are to help restore confidence in the Enterprises, enhance their capacity to fulfill their mission, and mitigate the systemic risk that contributed directly to instability in financial markets.