Those wishing to comment have until Aug. 27
By MortgageDaily.com staff
8/14/2003

The Office of Federal Housing Enterprise Oversight (OFHEO) has released a draft of its strategic five-year plan (2003-2008).

The document outlines the mission and goals of the agency. OFHEO is seeking comment from entities that will be affected by the strategic plan.

OFHEO says it has three strategic goals, as follows:

1. Ensure the Enterprises comply with safety and soundness standards, are adequately capitalized, and comply with other legal requirements.

2. Enhance public understanding of the nation’s housing finance system.

3. Contribute to Federal efforts to promote efficient and effective financial markets and homeownership.

As a part of its role overseeing Freddie Mac and Fannie Mae, OFHEO mentioned in the draft several factors that could cause concern in the housing finance industry, including the pace of the economy, the stock market, and housing market activity.

OFHEO also noted, "While housing buoyed the economy through the recent recession, a recession accompanied by higher interest rates would test the Enterprises' abilities to manage the interest rate risk associated with their large retained mortgage portfolios."

The agency also outlined factors that might prevent it from being effective.

"Lack of financial independence" and "economic variables" might prevent the agency from reaching these goals and fulfilling its mission, the draft says.

OFHEO's mission is "ensuring the safety and soundness of Fannie Mae and Freddie Mac and fostering the strength and vitality of the nation's housing finance system.

Comments are being solicited by OFHEO and can be offered through August 27.

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