DEFINITION of 'Office of Federal Housing Enterprise Oversight - OFHEO'
A federal regulatory body that formerly oversaw the government-sponsored entities (GSEs), Freddie Mac and Fannie Mae. It was established as an independent entity within the Department of Housing and Urban Development by the Federal Housing Enterprises Financial Safety and Soundness Act of 1992. It was replaced in 2008 by the Federal Housing Finance Agency (FHFA). The OFHEO had worked to ensure the capital adequacy and financial safety of the two housing GSEs.
BREAKING DOWN 'Office of Federal Housing Enterprise Oversight - OFHEO'
OFHEO's mission was to promote housing and a strong national housing finance system by ensuring the safety and soundness of Fannie Mae and Freddie Mac.
It also previously set the annual conforming loan limits.
In 2008, the OFHEO was replaced by the Federal Housing Finance Agency (FHFA), the successor regulator agency created by the merger of the OFHEO, the Federal Housing Finance Board (FHFB) and other functions.