Steady As They Go Scores
We have reviewed the 2024 scorecards FHFA released for Fannie and Freddie. Unlike prior years, it contains no new initiatives or aspirations, largely holding Fannie and Freddie to account for much of what they’ve been asked to do before. Fannie is given indirect encouragement to continue its title-insurance plans, but that’s only if it comports with added cost-efficiency under several longstanding FHFA goals. The directive regarding property insurance is only somewhat less elliptical, scoring the GSEs on the extent to which they develop property-insurance options that “mitigate risk while furthering sustainable homeownership” – whatever that may come to mean. Climate risk comes in for mention among goals telling the GSEs to “enhance” consumer understanding of climate risk and do their best to avoid it on their own via monitory and analysis that identify at-risk borrowers and “informs” policy. And, of course, the GSEs are to be safe and sound, transferring credit risk in large amounts to the greatest extent possible.