FHFA redefining itself ahead of GSE overhaul
By Hannah Lang
For much of the past 12 years, the focus of the Federal Housing Finance Agency has been to manage the fallout from the collapse of Fannie Mae and Freddie Mac. But the agency is positioning itself for the long term to be more of a supervisor than crisis manager. The agency recently announced a slew of structural changes and two new hires in an apparent effort to boost its research and supervisory capabilities. …The internal structural adjustments reflect Calabria’s goal of moving the GSEs out of conservatorship and into compliant companies that won’t leave the taxpayer on the hook in the event of an economic downturn, said Karen Petrou, managing partner at Federal Financial Analytics. “If you think about a regulatory agency, it has day-to-day supervisory issues and then it has to ensure that the entities it supervises are fit for purpose in terms of mission performance over the business cycle and over the financial cycle, and the kind of analytical capability proposed and in this new organization is going to be critical to that,” she said.