FHFA Quarterly Performance Review - FY 2013 Q1 
 Quarterly Performance Review for FY 2013Q1 (PDF) includes same information as below.
  

Goals and Objectives


Goal 1: Support Safe and Sound Housing GSEs

  • Managing risk and improving oversight


Goal 2: Promote Stability, Liquidity and Access in Housing Finance

  • Foreclosure prevention
  • Credit availability
  • Expanding access


Goal 3: Preserve and Conserve Assets

  • Minimize taxpayer losses during conservatorships


Goal 4: Prepare for the Future of Housing Finance

 

  • Build new mortgage market infrastructure
  • Establish common servicing standards
  • Contract Enterprise operations

GSEs = FHLBanks, Fannie Mae and Freddie Mac                   Enterprises =  Fannie Mae and Freddie Mac

 

Q1 2013 Quarterly Performance Review Summary Graphic


Status and Comments

Not Met

a) Develop a written supervisory strategy for each regulated entity that effectively identifies risks and ensures corrective actions are implemented. (Fannie & Freddie)

- There was a delay, but written strategies have since been developed. No further action required.

Not on Track

a) Number of foreclosure alternatives successfully completed.

- Results do not reflect the impact of changes to programs that went into effect Nov 1, 2012. Others will be effective March 1, 2013. Continued enhancements to HARP should also yield results as the year progresses.

b) Number of REO dispositions in individual markets to promote recovery via existing and new distribution channels.

- Over the last 4 quarters, the GSEs have been experiencing a downward trend in foreclosure filings and an upward trend in Short Sales. The result is less REO inventory at the GSEs. This trend is expected to continue

Info Not Available

a) Increase number /dollar amount of business awarded to women and minority owners by the entities FHFA regulates.

- The data will be available March 1st, 2013.

b) Reduce the amount of current outstanding repurchases.

c) Reduce the annual percentage of manufacturing defects at loan origination.

d) Reduce the annual net of operational loss events.

- FHFA believes the Enterprises are on-track to achieve these three measures; however, the precise status cannot be determined until the Dec. 31, 2012 financial statements and the loss data reports are released.

Strategic Goal 1: Safe and Sound Housing GSEs

FY 2013 Year-End Target

Year-to-Date: 1Q FY13

 
Performance Goal 1.1: Identify risks and require timely remediation of weaknesses

Measure Goal 1.1.1: Develop a written supervisory strategy for each regulated entity that effectively identifies risks and ensures corrective actions are implemented.

December 1, 2012

Fannie/Freddie:
Target Not Met

FHLBanks:
Target Met

Measure Goal 1.1.2: Percentage of examination findings remediated since the last exam or in accordance with an approved remediation plan.

100 percent

Annual Target
On Track

 
Performance Goal 1.2: Improve the condition of the regulated entities

Measure Goal 1.2.1: Complete guidance on the implementation of the asset classification policy (2012-AB-02, April 9, 2012) and ensure regulated entities establish implementation plans.

June 30, 2013

Annual Target
On Track

Measure Goal 1.2.2: Develop five new examination modules to guide examiners in reviewing and assessing the regulated entities.

March 31, 2013

Annual Target
On Track

Measure Goal 1.2.3: Conduct supervisory review of Enterprise compliance processes for tracking and executing conservatorship directives.

September 30, 2013

Annual Target
On Track

Measure Goal 1.2.4: Increased retained earnings for each FHLBank.

Year-ended 9/30/13 compared to preceding year

Annual Target
On Track

Strategic Goal 1: Relevance of measures

a)   Provide a roadmap for assessing risks inherent or emerging in GSE operations

b)   Help inform the supervision resources necessary for the FHFA oversight of the GSEs.

c)   Provide an indication of the FHLBank success in addressing MRAs.

d)   Establish a standard methodology for classifying assets of the GSEs based on asset credit quality.

    • The classification of assets is a critical element in evaluating the risk profile and the adequacy of capital, loan loss reserves, and earnings.

e)   Ensure examination guidance is developed to reflect current supervision philosophies and provides the detail necessary for use by new and experienced examiners.

f)    Ensure that timely execution of directives is effectively reviewed.

g)   Protect the par amount of member paid in capital to promote the flow of capital.

 

Strategic Goal 2: Stability, Liquidity, and Access in Housing Finance

FY 2013 Year-End Target

Year-to-Date: 1Q FY13

 Performance Goal 2.1: Promote stability and mitigate systemic risk that could lead to market instability 

Measure Goal 2.1.1: Number of refinances successfully completed through Home Affordable Refinance Program (HARP) 2.0.

600,000

Annual Target
On Track

Measure Goal 2.1.2: Number of foreclosure alternatives successfully completed.

447,000

Annual Target
Not On Track

Measure Goal 2.1.3: Number of REO dispositions in individual markets to promote recovery via existing and new distribution channels.

353,000

Annual Target
Not On Track

Performance Goal 2.2: Ensure liquidity in mortgage market

Measure Goal 2.2.1: Initiate the monthly mortgage market survey.

Q4 FY 2013

Annual Target
On Track

Measure Goal 2.2.2: Inform the public through dissemination of FHFA research publications on housing and housing finance markets.

Produce six research publications during FY 2013

Annual Target
On Track

Performance Goal 2.3: Expand access to housing finance for diverse financial institutions and qualified borrowers

Measure Goal 2.3.1: Reduce variance in single-family guarantee fees charged to lenders that sell large versus small volumes of mortgages to the Enterprises.

Narrowing variance in year-ending June 30, 2013 from preceding year

Annual Target
On Track

Measure Goal 2.3.2: Increase number/dollar amount of awards to women and minority owned businesses by FHFA.

Increase from prior year as included in the OMWI 2012 Annual Report to Congress 

Annual Target
On Track

Measure Goal 2.3.3: Increase number/dollar amount of business awarded to women and minority owners by the entities FHFA regulates.

 
Increase from prior year as included in the Annual Activity Reports submitted by the Regulated Entities Pursuant to 12 CFC 1207.23

Annual Target
Not Reported

Strategic Goal 2: Relevance of measures

a)   Appraise the effectiveness of the Home Affordable Refinance Program that allows homeowners to refinance into a lower interest rate mortgage.  (HARP 2.0 removes the 125 percent loan-to-value limit cap and enables more underwater homeowners to take advantage of this program).

b)   Assess the effectiveness of current foreclosure prevention programs.

c)   Gauge the number of REO properties that were sold by Fannie Mae and Freddie Mac. More dispositions drives down Fannie’s and Freddie’s cost of maintaining these properties. Dispositions also help to minimize the impact of REO properties on communities.

d)   Support the Safety and Soundness Act section 1324(c).

e)   Provide insight on housing and housing finance markets.

f)    Ensure homeownership is accessible for credit-worthy borrowers.

g)   Progress in diversifying the pool of vendors and contractors for FHFA, Fannie Mae, and Freddie Mac

Strategic Goal 3: Preserve and Conserve Enterprise Assets

FY 2013 Year-End Target

Year-to-Date: 1Q FY13

 
Performance Goal 3.1: Minimize taxpayer losses during the Enterprise conservatorships

Measure Goal 3.1.1: Reduce cross-subsidization in Enterprise single-family guarantee fees.

Year-ending June 30, 2013 compared to preceding year

Annual Target
On Track

Measure Goal 3.1.2: Undertake and defend legal actions that recover upon losses or seek to avoid liability to the GSEs.

Pursue legal actions where available and cost effective

Annual Target
On Track

Measure Goal 3.1.3: Reduce the amount of current outstanding repurchases.

50 percent

Annual Target
 Not Reported

Measure Goal 3.1.4: Reduce the annual percentage of manufacturing defects at loan origination.

From the previous year

Annual Target
Not Reported

Measure Goal 3.1.5: Reduce the annual net of operational loss events.

  5 percent

Annual Target
Not Reported

 

Strategic Goal 3: Relevance of measures

a)   Move guaranty-fee pricing toward levels that would be obtained in a fully private market.

b)   Protect the assets of Fannie Mae and Freddie Mac.

c)   Protect FHFA's rights as conservator and regulator.

 

Strategic Goal 4: Prepare for the future of housing finance in the US

FY 2013 Year-End Target

Year-to-Date: 1Q FY13

 
Performance Goal 4.1: Build a new infrastructure for the secondary mortgage market

Measure Goal 4.1.1: Publish a White Paper soliciting public input on a common securitization platform and model pooling and servicing agreement.

Q1 FY 2013

Target Met

Measure Goal 4.1.2: Finalize plan(s) for the securitization platform and pooling and servicing agreement.

Q3 FY 2013

Annual Target
On Track

 
Performance Goal 4.2: Establish standards that promote a safer and more efficient housing finance system

Measure Goal 4.2.1: Work with the industry to develop servicing data standards and agree on a timetable for data collection. 

Q3 FY 2013

Annual Target
On Track

Measure Goal 4.2.2: Announce, via the Enterprises, selling and servicing policies in support of the Contract Harmonization Project.
 

Q2 FY 2013

Annual Target
On Track

 
Performance Goal 4.3: Contract Enterprise operations

Measure Goal 4.3.1: Increase the average national ongoing g-fee.

Fiscal Year-ending 9/30/13 compared to preceding year

Annual Target
On Track

Measure Goal 4.3.2: Reduction in retained portfolio consistent with the Preferred Stock Purchase Agreement.

  15% annually

  Annual Target
On Track

 

Strategic Goal 4: Relevance of measures

a)   Ensure a common securitization platform and model PSA are crafted that incorporate public input.

b)   Ensure development of a servicing data standard that is beneficial to mortgage borrowers, the Fannie and Freddie, the mortgage industry, and FHFA

c)   Support evidence that the mortgage sellers and servicers have received the revised polices that are consistent between the Fannie and Freddie.

d)   Increasing the average nation ongoing g-fee and decreasing Fannie and Freddie’s "mortgage assets" will help contact the Enterprises' footprint in the mortgage market.