FHFA Strategic Plan 2022-2026

1 Page FooterOffice of Planning, Performance, and RiskFHFA STRAT EGIC PLAN: FISCAL YEARS 2022 2026 CONTROLLEDAs released for public input on DATEDRAFT FHFA STRAT EGIC PLAN: FISCAL YEARS 2022 2026As released for public input in February 2022iFHFA Strategic Plan: Fiscal Ye ars 2022 2026T a ble o f C o nte nts F H F A s M is s i o n, Vi s i o n, a nd Va l ue s .. 3A bo ut t he F e de r a l H o us i ng F i na nc e A g e nc y .. 4I. R e g u l a to r 4II. C o n se r va to r 5S tr a te g i c Go a l 1: S e c ur e the r e g ul a te d e nti ti e s s a fe ty a nd s o undne s s .. 6I. Ob j e c t i ve 1. 1: Id e n t i f y r i sk s t o t h e r e g u l at e d e n t i t i es a n d a sse ss t h e sa f e t y a n d so u n d n e ss o f r e g u l at e d e n t i t y o p e r a ti o ns 6II.

2 Ob j e c t i ve 1. 2: R e q u ir e t i m el y re m e d i a ti on o f M a t t er s R e q u i r in g A t t e n t i o n 7 III . Ob j e c t i ve 1. 3: Pr e ser ve a n d c on se r ve E n te r p r i se a sse t s w h i l e m a n a g i n g t h e c o n serva t o r sh i p s 7IV. Ob j e c t i ve 1. 4: Id e n t i f y o p t i o n s f o r i n co r po r a t i n g c l im a t e c h a ng e i n t o r e g u l a t e d e n t i t y g o ve r n a n ce 8S tr a te g i c Go a l 2: F o s te r ho us i ng fi na nc e m a r k e ts tha t pr o m o te e qui ta b l e a c c e ss to a ffo r da bl e a nd s u s ta i na bl e ho us i ng .. 8I. Ob j e c t i ve 2. 1: Pr o mo t e su st a in a b l e a cc ess t o m o r tg a g e c r e d it 8II. Ob j e c t i ve 2. 2: A d va n c e e q u i ty in h o u si n g f i n a n c e , i nc l u d i n g t h r o u g h c o m p l ia n ce w i t h f a i r l e n d i n g l a w s a n d r e g u l a t i o n s 9 III.

3 Ob j e c t i ve 2. 3: S e r ve a s a r e l i a bl e so u r ce o f i n f o r mat i o n a n d a n a l y si s o n t h e st a t e o f h o u si n g f i n a n c e ma r k e t s a n d r e l a t e d i ssu e s 9IV. Ob j e c t i ve 2. 4: F a c i l i ta t e g r e a ter a va i l a b i l it y o f a f f ord a b l e h o usi n g su p p l y , i n c l u d i n g a f f o r d a b le r e n t a l h ou si n g 10 V. Ob j e c t i ve 2. 5: S u p p or t l e ve r a g in g o f t e c hn o l o g y a nd d a t a t o f u r t h e r p r o mo t e ef f i c i e n cy an d c o st sa vi n g s i n m o r t g a g e p ro c e sse s 10 S tr a te g i c Go a l 3: R e s po ns i bl y s te w a r d F H F A s i nfr a s tr uc tur e .. 10 I. Ob j e c t i ve 3. 1: C u l t i va t e a h i g h -p e r f o rm in g , d i ve r se , a c co u n ta b l e , a n d e n g a g e d wo r k f or ce 11 II.

4 Ob j e c t i ve 3. 2: E n su r e e f f i c ie n t a n d e f f e ct i ve st e w ar d sh i p o f A g e n c y r e so u rc e s 11 III . Ob j e c t i ve 3. 3: D e l i ver h i g h -q u a l i t y su p p or t se r vi c e s t h a t p r o mo t e t h e A g e n c y s m i ssi o n e ff e c t i ve ne ss a n d sa f e g u a r d t h e A g e n c y s i n f r a st r u c tu r e 11 C ha l l e ng e s a nd R i s k s tha t M a y H i nde r A c hi e v e ment o f S tr a t e g i c Go a l s .. 13 iiFHFA Strategic Plan: Fiscal Ye ars 2022 2026S tr a te g i c Pl a nni ng P r o c e s s .. 14 C o ns ul ta ti o n a nd Ou tr e a c h .. 14 3 FHFA Strategic Plan: Fiscal Ye ars 2022 2026 FHFA s Mission, Vision, and ValuesMissionEnsure the regulated entities fulfill their mission by operating in a safe and sound manner to serve as a reliable source of liquidity for equitable and sustainable housing finance and community investment throughout the economic For FHFA s supervisory, regulatory, and mission-related activities to support a reliable, stable, equitable, and liquid housing finance system.

5 ValuesFHFA s culture is built on a foundation of competence, diversity, equity, and inclusion. Accordingly, FHFA employees emulate the following values:Fairness We value varied perspectives and thoughts and treat others with impartiality. Accountability We are responsible for carrying out our work with transparency and professional excellence. Integrity We are committed to the highest ethical and professional standards to inspire trust and confidence in our work and in one another. Respect We treat others with dignity, share information and resources, and Strategic Plan: Fiscal Ye ars 2022 2026 About the Federal Housing Finance AgencyThe Federal Housing Finance Agency (FHFA) was established by the Housing and Economic Recovery Act of 2008 (HERA), amending the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (Safety and Soundness Act).

6 The Agency is responsible for the effective supervision, regulation, and housing mission oversight of the Federal National Mortgage Association (Fannie Mae); the Federal Home Loan Mortgage Corporation (Freddie Mac); Common Securitization Solutions, LLC (CSS); and the Federal Home Loan Bank System, which includes 11 Federal Home Loan Banks (FHLB anks) and the Office of Finance (OF), a joint office of the FHLB anks. FHFA s mission is to ensure that Fannie Mae, Freddie Mac, and the FHLB anks (together, the regulated entities1) fulfill their mission by operating in a safe and sound manner so that they serve as a reliable source of liquidity and funding for housing finance and community investment throughout the economic cycle. Since September 6, 2008, FHFA has also served as conservator of Fannie Mae and Freddie Mac (together, the Enterprises).

7 I. Regulator The Safety and Soundness Act, as amended by HERA, assigns to FHFA regulatory oversight of the Enterprises and the FHLBank statute vests FHFA with the authorities, similar to those of other prudential financial regulators, to maintain the financial health of the regulated entities. FHFA is responsible for supervising the business and operations of the regulated entities to ensure that they are safe and sound and aligned with the missions set forth in their authorizing statutes. FHFA exercises these regulatory and supervisory authorities by issuing rules, policy guidance documents, and regulatory orders. The Safety and Soundness Act requires FHFA to fulfill the following duties: (A) to oversee the prudential operations of each regulated entity; and (B) to ensure that i.

8 Each regulated entity operates in a safe and sound manner, including maintenance of adequate capital and internal controls; 1 OF is not a regulated entity as the term is defined by statute (see 12 4502(20)). However, for convenience, references to the regulated entities in this document should be read to also apply to OF unless otherwise 12 Strategic Plan: Fiscal Ye ars 2022 2026ii. the operations and activities of each regulated entity foster liquid, efficient, competitive, and resilient national housing finance markets (including activities relating to mortgages on housing for low- and moderate-income families involving a reasonable economic return that may be less than the return earned on other activities); iii. each regulated entity complies with the Safety and Soundness Act and the rules, regulations, guidelines, and orders issued under this chapter and the authorizing statutes; iv.

9 Each regulated entity carries out its statutory mission only through activities that are authorized under and consistent with the Safety and Soundness Act and the authorizing statues; and v. the activities of each regulated entity and the manner in which such regulated entity is operated are consistent with the public Conservator FHFA s authority as both conservator and regulator of the Enterprises is based upon statutory mandates, which include the following conservatorship authorities granted by HERA: (D) ..take such action as may be i. necessary to put the regulated entity in a sound and solvent condition; and ii. appropriate to carry on the business of the regulated entity and preserve and conserve the assets and property of the regulated the business of the Enterprises in conservatorships also incorporates the above-referenced responsibilities that are enumerated in 12 4513(a)(1).

10 Additionally, under the Emergency Economic Stabilization Act of 2008, FHFA has a statutory responsibility in its capacity as conservator to implement a plan that seeks to maximize assistance for homeowners and use its authority to encourage the servicers of the underlying mortgages, and considering net present value to the taxpayer, to take advantage programs to minimize foreclosures. 53 12 4513(a)(1).4 12 4617(b)(2)(D).5 12 5220(b)(1).6 FHFA Strategic Plan: Fiscal Ye ars 2022 2026 Strategic Goal 1: Secure the regulated entities safety and soundnessAs regulator of the FHLBank System and as regulator and conservator of the Enterprises, FHFA promotes safe and sound operations at the regulated entities through the Agency s supervisory program. FHFA uses a risk-based approach to conducting supervisory examinations, which prioritizes examination activities based on the risk a given practice poses to a regulated entity s safe and sound operation or its compliance with applicable laws and regulations.