FHFA to Focus on Appraisal Modernization in 2024: OIG Report
Originally published on October 9, 2023, by Tony Cantu for MPAMag.com.
The inspector general’s office of the Federal Housing Finance Agency has released its report on management and performance challenges for the upcoming year, key among them the continued conservatorship of the GSEs – both of which have a combined adjusted total risk-based capital shortfall of more than $400 billion, according to the document.
“Strong supervision is especially important for the enterprises because they have a combined adjusted total risk-based capital shortfall of $421 billion,” officials wrote in the report released Friday. “FHFA must supervise them to ensure that they work to meet regulatory capital requirements.”
FHFA is vested with express authority under the Housing and Economic Recovery Act of 2008 to operate the GSEs, officials wrote, which includes exercising broad authority over trillions of dollars in assets and billions more in annual revenue. “In this role,” officials added, “FHFA makes business and policy decisions that can influence the entire mortgage finance industry.”