WASHINGTON - The Office of Federal Housing Enterprise Oversight launched a sweeping project Thursday to formalize its regulatory authority over Fannie Mae and Freddie Mac.
Publishing a "notice of regulatory project," the agency said it plans to adopt and implement written policies covering a wide range of Fannie's and Freddie's activities, including their officers' pay and duties; standards for managing various risks such as credit and interest rates; investment limits; information security safeguards; and financial disclosures.
The agency also said it will formalize the enforcement sanctions it may use against the two government-sponsored enterprises.
The agency "has since its inception in 1993 operated under a system largely without a full complement of promulgated regulatory standards or procedures," according to the Federal Register notice. Adopting the myriad rules envisioned by the project will "provide a clear expression of the regulatory basis for [the agency's] action in matters of supervisory concern."