Audit Report – AUD–2014–009. February 12, 2014,  FHFA Oversight of Enterprise Handling of Aged Repurchase Demands

“Why OIG Did This Report: “Various entities such as banks often sell mortgage loans to two Government Sponsored Enterprises – the Federal National Mortgage Association (Fannie Mae) and  the Federal Home Loan Mortgage Corporation (Freddie Mac); taxpayers invested heavily to keep these enterprises afloat during the recent housing crisis due to losses on those mortgages. The Federal Housing Finance Agency (FHFA or Agency) oversees the Enterprises as their regulator and conservator, which includes ensuring that loans they purchase are underwritten and serviced effectively and performing a
later review to determine if their selling and servicing standards are being met. This report focuses on FHFA’s oversight of the Enterprises’ programs for encouraging seller-servicers to resolve demands to repurchase defective loans timely, because robust FHFA oversight of harmonizing these programs between the Enterprises and ensuring effective implementation could yield significant benefits to taxpayers.”