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 May 20, 2009

Fannie Mae and Freddie Mac Continue to Face Challenges
Federal regulators stated on Monday, May 18 that both Freddie Mac and Fannie Mae continue to face significant challenges in the wake of the current economic crisis. Both institutions are facing ongoing critical operational, financial, and compliance issues.
The Federal Housing Finance Agency stated that both enterprises have made major management team changes, which have helped them to both make solid strides towards the remediation of existing problems. Both continue to be faced with numerous challenges which include the building and proper retention of staff as well as the correction of credit management and operational weaknesses which led to conservatorship.

Fannie Mae and Freddie Mac made up for nearly seventy-five percent of all mortgage loan originations, in the first half of last year. Although there has been trouble with both companies in the past, Freddie Mac and Fannie Mae will continue working hand in hand with the government to prevent more foreclosures from happening.

The director of the Federal Housing Finance Agency, James Lockhart stated that the concerns with the financial markets over the past two years are slowly abating, however challenges in the housing markets continue to persist.