Home / Supervision & Regulation / Fannie Mae & Freddie Mac
FHFAis responsible for ensuring that Fannie Mae and Freddie Mac operate in a safe and sound manner. This is done through prudential supervision and regulation.
Examination
FHFA’s annual examination program assesses Fannie Mae's and Freddie Mac'sfinancial safety and soundness and overall risk management practices.
Weutilize three approaches to achieveour supervisory responsibilities:
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ongoing monitoring;
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targeted examinations; and
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risk assessments.
Weevaluate Fannie Mae's and Freddie Mac'sfinancial condition, earnings, liquidity, and efforts taken to mitigate losses in its single-family and multifamily portfolios.
We assess their response to continued stress in the mortgage markets and its effect on theirrisk profile, performance, and condition.
Additionally, we evaluate their effectiveness of remediation of previously identified matters requiring attention.
We also evaluate the board’s and management’s responses to deficiencies and weaknesses identified by the Enterprise’s Internal Audit Department and external auditors.
Ouroversight program ensures coordination among all mission-critical supervisory functions throughout the examination process - including accounting and disclosure, capital adequacy, examination, financial analysis, and supervision infrastructure.
These interdependent assessments provideus with the basis for assigning a composite safety and soundness rating.
[OFHEO - Predecessor Agency -Special Examination Reports]
Report of the Special Examination of Fannie Mae - May 2006
Report of Findings to Date Special Examination of Fannie Mae - September 2004
Report of the Special Examination of Freddie Mac - December 2003
Reporting Framework
We use a specificframeworkto summarize examination results and conclusions toFannie Mae's and Freddie Mac'sboard of directors and Congress. FHFA’s examination ratings systemis known asCAMELSO.
Read our Annual Report to Congress.
