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FHFA: Completes fifth consecutive unmodified audit

Hits 18 out of 25 performance measures

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The Federal Housing Finance Agency fulfilled the majority of its four strategic goals for 2013, marking its fifth consecutive year with an unmodified audit, the agency revealed in its latest Performance and Accountability Report.   

The agency met 18 out of the 25 performance metrics it measures to determine how well it is meeting strategic goals.

Four goals support the achievement of the FHFA’s mission: the foundation of the government-sponsored agencies, the roles of the GSEs, the responsibility of the FHFA and the future of the housing finance system.

According to the report, the agency met 68% of its measures, did not meet 28% and data was unavailable for 4%.

The agency successfully completed guidance of the implementation of the asset classification policy, developed five new examination modules, created a process to track directives and increased earnings for each federal home loan bank.

However, it was roughly a month late on creating supervisory strategies for each FHLBank, and barley missed its goal of remedying all the matters requiring attention, hitting 99% for FY 2013.  

Meanwhile, on the second strategic goal, the company exceeded its target Home Affordable Refinance Program goal by 70%, reaching just over 1 million.

On the other hand, it missed its foreclosure alternatives goal of 447,000 offerings, reaching only 333,819, in addition to successfully completing 220,364 REO acquisitions instead of 353,000.

As a whole on the second goal, the FHFA met four out of eight of its targets.

Furthermore, the agency only missed one of its five performance measures under the third goal, with Freddie Mac not meeting its target of less than $1.468 billion in repurchases, with $3.359 billion in repurchases for all of 2013.

Similarly, the fifth goal met four out of five of its performance measures.

While the FHFA made progress towards finalizing the plans for a securitization platform and pooling and service agreement, it did not meet this goal by the June 30, 2013 deadline.

Overall, Acting Director of the FHFA Edward DeMarco said, “Long-term, continued operation in a government-run conservatorship is not sustainable for the Enterprises because each company lacks capital, cannot rebuild its capital base, and is operating on a remaining, finite line of capital from taxpayers.

"Until Congress determines the future of the enterprises and the housing finance market, FHFA will continue to carry out its responsibilities to supervise and regulate the FHLBanks and Enterprises," DeMarco said. 

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