The Federal Housing Finance Agency (FHFA) today released the 2023 Scorecard for Fannie Mae and Freddie Mac (the Enterprises) and their joint venture, Common Securitization Solutions, LLC (CSS). FHFA releases an annual scorecard to communicate its priorities and expectations for the Enterprises and CSS.
The 2023 Scorecard focuses on specific Enterprise goals that address affordability, fair lending and equity, in addition to modernizing single-family appraisal processes and continuing to prioritize climate risks. The scorecard also ensures that the Enterprises employ effective risk management systems and maintain sufficient liquidity to sustain operations through severe stress events.
FHFA expects the Enterprises to:
- Identify strategies and activities to facilitate greater affordable housing supply within the limits of charter authorities.
- Continue efforts to minimize single-family appraisal bias and improve valuation equity, including by supporting FHFA's implementation of the Property and Valuation Equity (PAVE) action plan.
- Transfer a meaningful amount of credit risk to private investors in a commercially reasonable and safe and sound manner, reducing risk to taxpayers.
- Explore the feasibility of expanding tenant protections in properties financed by the Enterprises.
- Manage new multifamily purchases to remain within the $75 billion per Enterprise multifamily cap requirements, including an expanded focus on workforce/moderate income housing.
- Pursue various other initiatives to advance the 2023 Scorecard goals.