DEFINITION of 'Federal Housing Finance Agency - FHFA'

A U.S. government agency created by the Housing and Economic Recovery Act of 2008 that regulates the secondary mortgage market by overseeing the activities of Fannie Mae, Freddie Mac and the 12 federal home loan banks. This new agency was established to act like a bank-regulator in order to strengthen and improve oversight of the U.S. housing finance system because of the secondary mortgage market's major role in the overall economy.


BREAKING DOWN 'Federal Housing Finance Agency - FHFA'

The role of the FHFA was previously handled by two other organizations, the Federal Housing Finance Board and the Office of Federal Housing Enterprise Oversight, with input from the government-sponsored enterprise office of the U.S. Department of Housing and Urban Development. The new organization's goals include increasing affordable housing, conserving the assets and property of Fannie Mae and Freddie Mac, and stabilizing a turbulent U.S. economy.

RELATED TERMS
  1. Conforming Loan

    A mortgage that is equal to or less than the dollar amount established ...
  2. U.S. House Financial Services Committee

    The congressional committee responsible for monitoring, writing ...
  3. House Price Index - HPI

    A broad measure of the movement of single-family house prices ...
  4. Maximum Loan Amount

    Describes the maximum amount that a borrower can borrow. The ...
  5. Nonconforming Mortgage

    A mortgage that does not meet the guidelines of Government Sponsored ...
  6. Housing And Economic Recovery Act ...

    This act was created to address the subprime mortgage crisis ...
Related Articles
  1. Investing

    Fannie Mae and Freddie Mac, Boon Or Boom?

    These two companies are crucial to the mortgage market, but are they ticking timebombs?
  2. Personal Finance

    Why Fannie Mae And Freddie Mac Might Be In Trouble

    Fannie Mae and Freddie Mac are under increased scrutiny as debates continue about conservatorship, share price, and profit allocations.
  3. Insights

    Freddie Mac May Follow Fannie Mae Into Rental Market

    Freddie Mac may follow Fannie Mae's example and guarantee financing in the single-family rental market.
  4. Personal Finance

    New Rules May Make It Easier to Get a Mortgage

    Fannie Mae and Freddie Mac have come to terms with lenders on how to solve mortgage disputes. This could be good news for people with lower credit ratings.
  5. Small Business

    Remodeling The Housing Finance Industry

    The meltdown in mortgage-backed securities is bringing about reform in home financing.
  6. Investing

    The Top 5 Fannie Mae Shareholders (FNMA)

    Find about the individuals, funds and companies that are top shareholders of Fannie Mae stock. Learn about their profiles and their relationships with Fannie Mae.
  7. Investing

    Freddie and Fannie Plunge After Court Ruling

    Appeals court ruling against hedge funds sees shares of Freddie and Fannie tumble.
  8. Insights

    Top 6 U.S. Government Financial Bailouts

    U.S. bailouts date all the way back to 1792. Learn how the biggest ones affected the economy.
  9. Personal Finance

    Are mortgage-backed securities backed by any guarantees?

    Actually, any mortgage-backed security (MBS) guarantee depends on who issued it.To review, an MBS is a security, created through the process of securitization, in which the underlying assets ...
  10. Investing

    Fannie Mae Dives Into Single-Family Rental Market

    Fannie Mae is positioning itself firmly in the rental market. Analysts expect the trend in government-backed securities in the single-family rental arena to continue.
RELATED FAQS
  1. Can I buy a house directly from Fannie Mae (FNMA)?

    Fannie Mae (the Federal National Mortgage Association, or FNMA) is a government-sponsored enterprise established to expand ... Read Answer >>
  2. How do you use the FNMA selling guide?

    Learn about Fannie Mae Selling Guide and find out details about how its parts provide support to the business relationship ... Read Answer >>
  3. How does a decline in housing prices affect the banking sector?

    Learn about the affects on banks when housing prices go down, including loan delinquency rates, mortgage foreclosures, and ... Read Answer >>
  4. How did moral hazard impact the financial crisis of 2007-08?

    Find out how years of government incentives and pressure from the Federal Reserve created a moral hazard that helped cause ... Read Answer >>
  5. Who regulates mortgage lenders?

    The Federal Truth in Lending Act and the Real Estate Settlement Procedures Act (RESPA) dictate most of the regulations mortgage ... Read Answer >>
Hot Definitions
  1. Straddle

    An options strategy in which the investor holds a position in both a call and put with the same strike price and expiration ...
  2. Trickle-Down Theory

    An economic idea which states that decreasing marginal and capital gains tax rates - especially for corporations, investors ...
  3. North American Free Trade Agreement - NAFTA

    A regulation implemented on Jan. 1, 1994, that eventually eliminated tariffs to encourage economic activity between the United ...
  4. Agency Theory

    A supposition that explains the relationship between principals and agents in business. Agency theory is concerned with resolving ...
  5. Treasury Bill - T-Bill

    A short-term debt obligation backed by the U.S. government with a maturity of less than one year. T-bills are sold in denominations ...
  6. Index

    A statistical measure of change in an economy or a securities market. In the case of financial markets, an index is a hypothetical ...
Trading Center