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.