On November 18, the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae and Freddie Mac (the Enterprises), issued the 2022 Scorecard for Fannie Mae, Freddie Mac and Common Securitization Solutions. Each year, FHFA issues the Scorecard in order to evaluate the Enterprises for fulfilling their core mission.
“The 2022 Scorecard will better position the Enterprises to support the housing market throughout the economic cycle,” said FHFA Acting Director Sandra L. Thompson in a statement. “Key to the Enterprises fulfilling their statutory mandates is their ability to advance sustainable and affordable homeownership and rental housing opportunities, and to improve their capital position by transferring credit risk away from the taxpayer.”
The Scorecard evaluates the Enterprise’s performance across the entire organization’s business areas for both single-family and multifamily as well as the Common Security platform. This year, the Scorecard stresses the importance of promoting sustainable and equitable access to affordable housing and doing so in a safe and sound manner. The two assessment areas of the Scorecard are:
- Promote Sustainable and Equitable Access to Affordable Housing.
- Operate the Business in a Safer and Sound Manner.
Unlike the 2021 Scorecard, there is no mention of preparing the Enterprises for exit from conservatorship, a major shift in focus for the regulator.
Specially for multifamily, the Scorecard includes the previously announced purchase caps of $78 billion for each Enterprise, subject to certain affordable housing milestones. NMHC believes the caps should provide sufficient capital for the multifamily industry in 2022 even with an increased focus on affordability. The Scorecard also includes specific areas of study, analysis and strategy development for the multifamily businesses that include:
- Develop strategies to support sustainable homeownership and affordable rental housing.
- Identify strategies and activities to facilitate greater affordable housing supply within the limits of charter authorities and submit recommendations to FHFA.
- Research and assess opportunities to increase access for small and regional lenders to Enterprise multifamily products.
These focal points will provide NMHC and NAA opportunities to work with the Enterprises and FHFA to address the issues of supply, access to capital and housing affordability.
NMHC will continue to keep members updated on our ongoing activities with FHFA via our weekly newsletter and newsroom. For more information on these efforts, please visit our finance and capital markets webpage.