How are Fannie Mae and Freddie Mac regulated?
The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 created a regulatory oversight structure for Fannie Mae and Freddie Mac to monitor their housing mission and their safety and soundness. HUD has oversight responsibilities for the housing mission of the agencies. Safety and soundness regulation is vested in the Office of Federal Housing Enterprise Oversight (OFHEO). Organizationally, OFHEO is located within HUD, but operates independently of the Secretary of HUD as it implements, monitors and enforces capital standards for Fannie Mae and Freddie Mac. This arrangement is similar to how the Office of Comptroller of the Currency (OCC) operates within the U.S. Department of the Treasury. Congress is currently evaluating the oversight agency for the GSEs.
