FHFAs Oversight of Fannie Maes Single-Family Underwriting Standards, Audit Report: AUD-2012-003, March 22, 2012
“Although FHFA has taken steps to ensure that the mortgages that the Enterprises purchase conform to underwriting standards, the Agencys oversight of underwriting is limited. FHFA informally reviews Fannie Maes proposed credit policy changes, which may or may not affect underwriting standards and variances from them. FHFA also comments on and approves Fannie Maes Corporate Scorecard, which in 2011 included goals intended to improve the quality of mortgages purchased. In addition, FHFA recently conducted a targeted examination that included reviewing whether a small sample of loans met underwriting standards (including variances). FHFA-OIG concluded that the Agency can further strengthen its oversight by creating formal processes for reviewing both the Enterprises underwriting standards and variances from them. FHFA can also enhance its guidance for planning and conducting its examinations of the Enterprises underwriting quality control.”
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